After opening the day on a negative note, share markets in India continued their downtrend throughout the day and ended in the red. Sectoral indices traded in the red, with stocks in the realty sector, power sector and PSU sector leading the losses.

At the closing bell, the BSE Sensex stood lower by 295 points (down 0.8%) and the NSE Nifty closed down by 99 points (down 0.9 %). The BSE Mid Cap index ended the day down 1.4%, while the BSE Small Cap index ended the day down 1.6%.

The rupee was trading at Rs 72.46 against the US$ in the afternoon session.

Asian stock markets finished on a mixed note. As of the most recent closing prices, the Hang Seng was down by 1.3% and the Shanghai Composite was down by 1.1%. The Nikkei 225 was up by 1.2%. Meanwhile, European markets were trading on a negative note. The FTSE 100 was down by 0.2%. The DAX was down by 0.5%, while the CAC 40 was down by 0.3%

In the news from the global financial markets, President Donald Trump on Monday effectively broadsided one of the world’s largest trade relationships, announcing plans to proceed with tariffs on another US$ 200 billion in US imports of Chinese goods.

Taken with the US$ 50 billion in tariffs already in place, this means roughly half of everything Americans buy from China – their largest source for imports – is now subject to punitive import duties.

Whole industrial sectors, including agriculture, manufacturing, textiles and retail, stand to feel the effects of the above development.

Meanwhile, China, which is America’s third-largest export market, has vowed to counter-attack with plans to slap tariffs on another US$ 60 billion in US exports, meaning about 80% of US exports to China would be subject to retaliation.

How this trade war pans out remains to be seen. Meanwhile, we will keep you updated from all the developments from this space.If China slaps tariffs on another US$ 60 billion in US goods, this will bring total US exports subject to Beijing’s retaliation to US$ 110 billion, at 2017 sales levels.