BSE, NSE, shut on account of Ganesh Chaturthi today; global stocks fall as new US-China tariffs add to gloom

The National Stock Exchange (NSE), BSE, bond, commodity and forex markets will remain closed for trading on 2 September 2019 on account of Ganesh Chaturthi. Wholesale commodity markets, including metal and bullion, too will remain closed for trade. There will be no trading activity in forex and commodity futures markets as well. On Friday, equity benchmark BSE Sensex advanced 264 points, propelled by gains in index heavyweights HDFC, ICICI Bank, HUL and ITC amid positive cues from the global markets. After gyrating 568 points during the day, the 30-share Sensex ended 263.86 points, or 0.71 percent, higher at 37,332.79. It hit an intra-day high of 37,397.97 and a low of 36,829.81. Similarly, the broader NSE Nifty rose 74.95 points, or 0.68 percent, to close at 11,023.25. The Indian rupee appreciated 25 paise to 71.55 against the US dollar intra-day. Meanwhile, global stock prices fell on Monday after the United States and China imposed new tariffs on each other’s goods, reinforcing investors’ worries over slowing global growth. [caption id=“attachment_4748931” align=“alignright” width=“380”]  Representational image. Reuters.[/caption] The E-mini futures for US S&P500 fell as much as 1.06% in early trade and last stood down 0.39%. Japan’s Nikkei shed 0.28 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.3 percent, led by 0.5% drop in Hong Kong’s Hang Seng after another weekend of violent anti-government protests. But mainland Chinese shares fared better, with the CSI300 index rising 0.3% despite the trade row escalation. China’s State Council said on Sunday it will increase adjustments of economic policy. A private survey on Monday showed factory activity unexpectedly expanded in August, though gains were modest and contrasted with official data that pointed to further contraction. US President Donald Trump slapped 15 percent tariffs on a variety of Chinese goods on Sunday—including footwear, smart watches and flat-panel televisions - while China imposed new duties on U.S. crude, the latest escalation in a bruising trade war. A variety of studies suggest the tariffs will cost U.S. households up to $1,000 a year, with the latest round hitting a significant number of U.S. consumer goods. In retaliation, China started to impose additional tariffs on some of the US goods on a $75 billion target list. Beijing did not specify the value of the goods that face higher tariffs from Sunday. “So far Trump appears defiant though on the tariff hikes, blaming the Fed and American companies for their difficulties in dealing with the tariffs,” said Shane Oliver, chief economist at AMP in Sydney. “There is a long way to go though and re-establishing trust will be difficult after the experience since mid-last year. Share markets may still have to fall further to pressure Trump to resolve the issue.” Many market players say the market’s reaction was likely exaggerated by algorithm-driven players’ flows in thin trading conditions at start of Asian trade on Monday. [caption id=“attachment_2414160” align=“alignright” width=“380”]  Representational image. Reuters[/caption] Liquidity could be even more limited than usual because of a US market holiday on Monday. “(The market move) goes to show you how many data mining algos are involved with equity linked compared to forex-linked. Was anyone surprised by these tariffs that took effect yesterday?” said Takeo Kamai, head of execution at CLSA in Tokyo. Tension is also running high in Hong Kong, with police and protesters clashing in some of the most intense violence since unrest erupted more than three months ago over concerns Beijing is undermining democratic freedoms in the territory. Thousands of protesters blocked roads and public transport links to Hong Kong airport and police made several arrests after demonstrators smashed CCTV cameras and lamps with metal poles and dismantled station turnstiles. China, eager to quell the unrest before the 70th anniversary of the founding of the People’s Republic of China on 1 October, has accused foreign powers, particularly the United States and Britain, of fomenting the unrest. Oil prices also fell on Monday. Brent crude futures fell 0.49% to $58.96 a barrel while US West Texas Intermediate (WTI) crude lost 0.18 percent to $55.00. In the currency market, the dollar dipped slightly against the yen to 106.12 yen. The euro stood almost flat at $1.09905, not far from two-year low of $1.0963 hit in U.S. trade on Friday.