Gold price in India rises to four-month high. US stock futures slide on back of weak Chinese industrial output data, fall in chipmaker shares. Facebook invests in Indian social-commerce startup, Meesho. SEBI to put in place a rigorous disclosure regime for credit rating agencies. WPI inflation slips to near 2-year low in May, declines to 2.45%. India to impose retaliatory tariffs on 29 US products. Facebook signs up Visa, Mastercard, Paypal and others to back its new cryptocurrency. Huawei delays launch of foldable phone.
Moving on to the top Business news today:
India to impose retaliatory tariffs on 29 US products. Gold price rises to four-month high.
We Won’t Keep Calm: Less than a week after Washington withdrew duty-free benefits for Indian exporters, India has decided to impose the long due retaliatory tariffs on 29 US products.
India has repeatedly postponed imposing the retaliatory tariffs on US goods worth $235m since it first announced these on 20 June last year. The current deadline expires on 16 June.
US had earlier this month terminated India’s designation as a beneficiary developing nation under the key Generalized System of Preference (GSP) trade programme with effect from June which allowed $5.6bn worth of Indian exports to enter the US duty free.
Gold Rush: Gold prices in India rose by INR331 to INR33,290 per 10 gram, their four-month high today on back of global geopolitical tensions, escalating US-China trade worries and stronger Rupee.
US stock futures slide on back of weak Chinese industrial output data, fall in chipmaker shares.
US stock futures witnessed a slump on Friday on back of a fall in semiconductor shares alongside weak Chinese industrial output data.
Dow Jones futures were lower by 0.2%, S&P 500 futures slipped 0.3% and Nasdaq futures were off by 0.8%.
The fall in chipmaker shares is believed to have been primarily triggered by Broadcom’s weak quarterly results. Broadcom also lowered its full-year revenue guidance, stating that the US-China trade tensions and export restrictions on Huawei were hurting demand for chips.
Also This: Chinese industrial production was up 5.5% Y-o-Y, the slowest pace of growth in 17 years, yet another instance of the US-China trade tensions affecting growth.
The Blame Game: The Trump administration on Thursday blamed Iran for an attack on two oil tankers at the mouth of the Persian Gulf.
Early Thursday morning, a Norwegian and a Japanese tanker carrying oil products from the Persian Gulf to Asia reported explosions while in the Gulf of Oman and burst into flames. All 44 sailors on both ships were rescued by US and Iranian naval vessels.
The news comes only a month after four other tankers were attacked in the same area, after Iran vowed to close the vital Strait of Hormuz to all traffic if US sanctions on its oil exports intensified. US officials blamed Iran for that earlier attack, though they have not yet presented evidence to back up their assertions.