Trade War
Globally investors continue to watch
closely the trade standoff between the world's largest economies United
States and China which has been intensified further after President
Donald Trump's reaction to more tariffs by China.
China on
Wednesday announced fresh tariffs on 106 US products and on Thursday US
President Donald Trump threatened more levies, asking his trade
representative to consider USD 100 billion in additional tariffs against
China.
China's Commerce Ministry said Friday the country would
not hesitate to react with a "major response" to the new tariffs from
the US.
"Financial instability would be a result from
intensification of the ongoing trade war and the unwinding of the easy
monetary policy by developed nations. Higher tariffs can force the
countries to devalue their currency to make their exports competitive
which can have a negative effect," Akash Jain, Vice President Equity
(Research) at Ajcon Global Services said .
He believes that the ongoing trade war cannot go
long as it would have serious repercussions in the respective economies.
There has to be some amicable solution which would even out the worries
of market participants, he said.
Macro Data
On
the macro front, CPI inflation for the month of March and industrial
production data for February will be released on Thursday after market
hours.
CPI inflation declined to four-month low of 4.44 percent in
February, from 5.07 percent in January while the index of industrial
production jumped 7.5 percent in January 2018 compared with 7.1 percent
in December 2017.
Foreign exchange reserves data for the week
ended April 7, and deposit & bank loan growth for the last week of
March will be announced on Friday after market hours. Balance of trade
data for March will also be declared on Friday
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