Sensex, Nifty Seen Opening Up As Oil Prices Plunge

(RTTNews) - Indian shares may open higher on Friday, with hopes for policy continuity and stability as well as tumbling oil prices likely to support underlying sentiment.

The BJP's stunning win in Lok Sabha elections pointed to a fundamental shift in Indian politics, assuring stability in governance and continuation of the development agenda.

Oil headed for its biggest weekly drop since December as the escalating U.S.-China trade war sparked concerns about global growth.

WTI crude oil futures for June ended down $3.51, or 5.7 percent, at $57.91 a barrel on Thursday, the lowest settlement since March 12 after tumbling 2.7 percent the day before.

Benchmark indexes Sensex and the Nifty hit record highs on Thursday before reversing direction to end lower by 0.8 percent and 0.7 percent, respectively. The rupee surrendered all its early gains to end down 36 paise at 70.02 against the dollar.

Asian stocks hovered near four-month lows this morning as investors fret about the possibility of a technology cold war between the world's two largest economies.

During a weekly briefing, Chinese Commerce Ministry spokesman Gao Feng said the Trump administration must "show sincerity and correct their wrong actions" if the U.S. wants trade talks to continue.

"Negotiations can only continue on the basis of equality and mutual respect," Gao said, noting that China is closely monitoring developments and preparing a necessary response.

U.S. stocks retreated further overnight amid trade tensions after the
Chinese Communist Party's flagship newspaper published two commentaries assailing U.S. moves to curb Chinese companies

The Dow dropped 1.1 percent and the S&P 500 declined 1.2 percent while the tech-heavy Nasdaq Composite tumbled 1.6 percent to end at its lowest closing level in over two months.

European markets also fell sharply on Thursday as investors remained wary of the impact of the U.S.-China trade dispute on the global economy.

Falling crude oil prices, soft euro zone data and Brexit uncertainty also weighed on markets.

The pan European Stoxx 600 gave up 1.4 percent. The German DAX and France's CAC 40 index both plunged around 1.8 percent while the U.K.'s FTSE 100 plummeted 1.4 percent.
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