Sensex, Nifty Seen Higher At Open As Trump Extends EU Tariff Deadline

(RTTNews) - Indian shares look set to open higher on Monday, tracking gains in U.S. index futures and mostly positive cues from Asian markets after U.S. President Donald Trump extended a deadline for EU trade deal until 9 July, following a call with European Commission president.

Investors will also react to RBI's record dividend transfer of Rs. 2.7 lakh crore to the government and its implications for fiscal policy.

On the economic front, the release of industrial and manufacturing production data for April along with the Q4 GDP growth figures due this week may provide fresh insights into the economic recovery trajectory.

Benchmark indexes Sensex and Nifty fell around 0.7 percent each last week amid fears about U.S. debt after Moody's downgraded the country's sovereign rating.

Asian markets were mixed this morning, with Japan and South Korea leading regional gains.

Gold retreated in Asian trade after climbing more than 2 percent to a two-week peak on Friday. Oil edged up slightly while the U.S. dollar index hovered near one-month low against its rivals.

U.S. stocks ended firmly in the red on Friday as President Trump targeted the European Union and Apple with tariff threats.

He threatened to impose 50 percent tariffs on imports from the European Union beginning June 1st, claiming talks with the bloc are "going nowhere."

Separately, Trump warned that Apple would face a 25 percent tariff on iPhones manufactured outside the United States, sparking debate on manufacturing and job creation.

The tech-heavy Nasdaq Composite shed 1 percent, the S&P 500 dropped 0.7 percent and the Dow dipped 0.6 percent.

European stocks tumbled on Friday due to escalation of trade tensions. The pan European STOXX 600 declined 0.9 percent.

The German DAX slumped 1.5 percent and France's CAC 40 plummeted 1.7 percent while the U.K.'s FTSE 100 eased 0.2 percent.