What will drive share market today: Modi’s new government formation, other key things to watch out
By: Monika Yadav | Published: May 30, 2019 9:02:34 AM The Financial Express
The Indian headline indices- Sensex and Nifty are likely to open flat on Thursday amid escalating trade tensions between two superpower economies, the US and China. Investors will also keenly watch government formation and ministry allocation after BJP saw a landslide victory in 2019 general elections. The Asian shares tumbled following losses on Wall Street. According to Chinese media, China could use rare earths to strike back in a trade war with Washington. The SGX Nifty ended higher at 11,868 level, up 4 points from the last close. Yesterday, the Indian stock markets settled lower. While the Sensex closed 247.68 points down at a level of 39,502.05, Nifty50 also closed lower by 67.65 points at 11,861.10 level on Wednesday. We take a close look at key factors which would drive the market today:
US-China trade war: According to Chinese media, China could use restrict the sale of rare earth in a bid to strike back in a trade war with the world’s largest economy US. The rare earths are a group of elements with unique properties that are used in cell phones, hybrid cars and cancer treatment. The trade tensions between the two countries don’t seem to ease anytime soon. On Monday, the US President Donald Trump had said the US was not ready to make a deal with China and the trade tariffs might go up substantially. However, he also said that he expected a deal in future.