Sensex, Nifty Seen Flat To Lower As Trump Trade War Escalates

(RTTNews) - Indian shares are seen opening flat to slightly lower on Monday amid renewed concerns about U.S. President Donald Trump's escalating trade battles.

Trump on Saturday threatened to impose a 30 percent tariff on imports from Mexico and the European Union starting on Aug 1, even as they are locked in long negotiations.

The European Union has announced a delay to its countermeasures against the U.S. until early August to allow more time to negotiate a deal.

However, Germany's finance minister has called for firm action if the levies went ahead. French President Emmanuel Macron has called on the bloc to "resolutely defend European interests".

Closer home, markets will also take cues from earnings and upcoming WPI and CPI inflation data as the week progresses.

On the trade front, the Bloomberg reported that the United States is working toward an interim trade agreement with India that could reduce proposed tariffs to below 20 percent.

Benchmark indexes Sensex and Sensex fell over a percent last week after a disappointing start to the earnings season.

Asian markets were mixed this morning after the release of Chinese trade data. The dollar maintained its recent gains and gold was marginally lower while oil edged up slightly, building on Friday's gains, fueled by anticipation of new U.S. sanctions on Russia.

U.S. stocks retreated from record highs on Friday after President Trump threatened a 35 percent tariff on Canadian imports effective August 1 and warned of a blanket tariff of 15-20 percent on most trading partners.

The Dow slipped 0.6 percent, the tech-heavy Nasdaq Composite eased 0.2 percent and the S&P 500 gave up 0.3 percent.

European stocks closed lower on Friday as renewed trade tensions rattled investor confidence. The pan European STOXX 600 declined 1 percent.

The German DAX fell 0.8 percent, France's CAC 40 lost 0.9 percent and the U.K.'s FTSE 100 shed 0.4 percent.