In the fortnight from 1st to 14th September 2018, major markets over the world were hit by global trade concern as the two largest economies, U.S. and China, continued there bickering over tariffs.

• International Market

  U.S. markets traded low as U.S. President hinted it would increase tariffs on all Chinese imports. North American Free Trade Agreement (NAFTA) also seemed to go nowhere with Canada and U.S. yet to reach a common ground. To add to the woes, the President included Japan in his trade purview.

  European markets traded low due to persistent worries over global trade. The Bank of England (BoE) and the European Central Bank (ECB) maintained status quo in their respective policies. The crisis around lira eased a little after the central bank raised its key interest rate sharply in a bid to control surging inflation.

  Asian markets were no exception to the weakness seen in global peers. Worries over potential new tariffs further weighed on the Asian bourses following the U.S. plan to impose tariffs.

• Indian Market

  Indian equity markets were burdened by free fall wherein it stooped to lifetime lows. Plus, final reading of a private survey showed domestic service sector expanded at a slower pace and manufacturing sector growth eased.

  The Banking sector plunged during the period under review as the broader market sentiment remained subdued. The Consumer sector also moved down as elevated global crude oil prices soured investor sentiment.

  Auto & Auto Ancillaries sector ended on a negative note during the period. Oil & Gas sector fell on worries over rise in global crude oil prices ahead of the U.S. sanction on Iran oil supplies.

  The domestic currency fell as the U.S. dollar continued to gain strength and weakness in domestic equity markets. Surge in global crude oil prices also added to the weakness.

Source: MFI Explorer

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