INDIA: Country Wrap: US Tariffs Hit 50%
- BofA research suggests that Indian companies are holding back on big investment decision pending clarity on domestic demand and the global trade outlook (source: NDTV Profit)
- U.S. President Donald Trump's 50% tariffs on Indian products took effect Wednesday, with the doubling of import taxes on the South Asian nation coming as Trump targets it over its purchases of Russian oil. The U.S. doesn't import as much from India as it does from trade partners such as China, Canada, Mexico or the European Union, but the increased levies will still be felt in certain industries. India's annual exports to the U.S. stand at about $86.5 billion, or about 2% of that country's gross domestic product, according to a report from the Global Trade Research Initiative, a research provider based in New Delhi. Around 66% of those exports are now facing a 50% tariff and will become uncompetitive, with apparel, textiles, gems, jewelry, shrimp, carpets and furniture among the categories being hit. (source BBG)
- The NIFTY 50 finished lower by -1.02% yesterday on tariff news and is down in the morning trade by -0.43%
- The Rupee is has not enjoyed the rally that regional peers have today, instead near where it opened at 87.65
- Bonds are stronger with the 10yr lower by 2bps at 6.58%
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
EUROZONE T-BILL ISSUANCE: W/C 28 Jul
Italy and Greece are both still due to sell bills this week while France came to the market yesterday. We expect issuance to be E14.3bln in first round operations, down from E17.7bln last week.
- This morning, Italy will look to issue E6.5bln of the new 6-month Jan 30, 2026 BOT.
- Tomorrow morning, Greece will look to come to the market with E500mln of the new 13-week Oct 31, 2025 GTB.
EUROSTOXX50 TECHS: (U5) Support Holds For Now
- RES 4: 5575.00 High Mar 3 and a major resistance (cont)
- RES 3: 5526.00 High Mar 19 / 20 (cont)
- RES 2: 5486.00/88.00 High May 20 and a bull trigger / High Jul 10
- RES 1: 5449.00 High Jul 27
- PRICE: 5364.00 @ 06:21 BST Jul 29
- SUP 1: 5292.00 Low Jul 22
- SUP 2: 5281.00/5194.00 Low Jul 1 & 4 / Low Jun 23 and bear trigger
- SUP 3: 5138.00 High Apr 30
- SUP 4: 5078.00 Low Apr 30
The trend condition in Eurostoxx 50 futures remains bullish and short-term weakness for now, appears corrective. Support at 5281.00, the Jul 1 / 4 low, remains intact. A clear break of this level would strengthen a bearish threat. For bulls, a resumption of gains would refocus attention on key resistance and the bull trigger at 5486.00, the May 20 high. It has recently been pierced, a clear breach of it would resume the bull cycle and open 5500.00.
EURGBP TECHS: Short-Term Reversal Threat
- RES 4: 0.8835 High May 3 2023
- RES 3: 0.8800 Round number resistance
- RES 2: 0.8781 2.236 pro of the Mar 3 - 11 - 28 price swing
- RES 1: 0.8769 High Jul 27 and the bull trigger
- PRICE: 0.8680 @ 06:33 BST Jul 29
- SUP 1: 0.8666/49 Low Jul 28 / 20- day EMA
- SUP 2: 0.8581 50-day EMA
- SUP 3: 0.8540 Low Jun 30
- SUP 4: 0.8508 Low Jun 27
EURGBP reversed sharply lower from Monday’s intraday high. For now, the trend set-up remains bullish, however, Monday’s price pattern - a bearish engulfing candle - does signal a potential short-term reversal. A continuation lower would expose support at the 20-day EMA, at 0.8649. Clearance of this average would signal scope for a deeper retracement. For bulls, a move through 0.8769, the Jul 27 high, would confirm a resumption of the uptrend.
