Global shares are losing ground during the trade reacting on a decision of China for a hike on US imports.
Whereas China’s Shanghai complex index is trading around 17.30 points or 0.60% low. While Japan’s Nikkei is slipping almost 240 points. This is soaring close to the lowermost level.
However, indices on Wall Street fell over a percent after the decision of tariff coming into effect. Although, Dow Jones is cutting down almost 356 points while trade to close at 24,816 whereas S&P 500 lose 38 points end at 2,756 levels. Hence, Nasdaq is losing almost 115 points for ending the session at 7,454 levels.
Although, China’s retaliatory move in reaction to the United States decision to increase import tariffs is worth of Chinese goods. However, the US president is increasing the import tariffs on imports from Mexico, ending India’s tariff-free access to the US market in a GSP scheme.
Hence, surprising trade tensions bring in the major economies in world China and the US are frightening the capital market globally.
As Trump is tweeting about the views on China till exit poll outcomes in India. However, benchmark S&P BSE Sensex and Nifty50 are losing 4% with indices observing the worst selling streak.
Although, S&P BSE Sensex gains around 3% whereas Nifty50 is moving up around 4% for avoiding global signs. As the rally was on account anticipation of NDA (National Democratic Alliance) protecting consecutive term after general elections.
An advantage to India
During the trade war preventing for time being, discussing on how India can advantage this situation. Hence, analysts are suggesting that India is not able to ‘fill a gap’ created by China. Hence, a country is not having the necessary capacity.
Head of research at IDBI Capital, AK Prabhakar mentions that India is not trading partner to the US for acquiring an advantage from a trade war. Hence, exports are growing currently, don’t have conventional benefits as exporting countries.
As per the report by UBS, the US is importing tariff goods from China comprising around 50% of China’s goods basket.
Although, India as a country is not having more impact. Primarily, on the consumption-driven economy and secondarily, the first trade war is concerning the texture.
Gaurang Shah mentions that in the long term, there is a slowdown in China, which will advantage India as a developing nation in terms of investment & FDI (Foreign Direct Investment).