India has raised tariffs on 28 items exported from the US with effect from Sunday in retaliation to America’s withdrawal of preferential access for Indian products from 5 June.The duties were in retaliation to the US decision of significantly hiking customs duties on certain steel and aluminium products. Among the targeted imports, duty on walnut has been raised from 30% to 120%, while duty on chickpeas, Bengal gram (chana) and masur dal has been raised from 30% to 70%.
The U.S. dollar was roughly unchanged on Monday, hovering near the two-week high set earlier in the session as investors reconsidered how dovish the Federal Reserve is likely to be at this week’s policy meeting.Broader currency markets were quiet, as traders hesitated to put on large positions before the Fed’s two-day meeting, a meeting of European Central Bank policymakers in Portugal and the Bank of England’s interest rate decision on Thursday.Expectations of a rate cut at the Fed’s June 18-19 meeting have fallen to a probability of 20.8%.But bets for monetary easing at its July meeting remain elevated, with markets pricing in a 67.9% chance of a 25 basis point cut.
A wide range of U.S. companies told a hearing in Washington on Monday that they have few alternatives other than China for producing clothing, electronics and other consumer goods as the Trump administration prepares new tariffs on remaining U.S.-China trade.
New home prices in China rose at their fastest pace in five months in May, complicating government efforts to keep frothy housing markets under control as it rolls out more stimulus for the slowing economy.Average new home prices in China’s 70 major cities rose 0.7% in May from the previous month, picking up from a 0.6% rise in April and the quickest pace since December, according to Reuters calculations based on National Bureau of Statistics (NBS) data on Tuesday.
Italy believes it can satisfy the European Commission’s demands over its public accounts for this year, but the real sticking point in negotiations is now about 2020.Brussels has threatened Italy with disciplinary action that would entail closer oversight of its fiscal policy and could eventually lead to fines.It complains Rome did not cut its public debt in 2018 as promised, and sees it continuing to rise this year and next unless the anti-austerity government adopts belt-tightening measures.The government in Rome now believes its 2019 budget deficit will come in at 2% of gross domestic product - a level already accepted by the Commission in December, a government source said, but Brussels also wants commitments for 2020.
Gold prices edged higher on Tuesday as the dollar pulled back from multi-week highs ahead of the U.S. Federal Reserve’s two-day monetary policy meeting.Spot gold was up 0.2% at $1,341.38 as of 0344 GMT.U.S. gold futures also rose 0.2% to $1,345.20 an ounce.The overall sentiment in the gold markets is positive. There are expectations that the Fed will cut interest rates, which has weakened the dollar and remains a main driver for prices.
Oil prices were falling for a second day on Tuesday, after more signs that global economic growth is being hit by U.S.-China trade tensions, although losses were limited amid tensions in the Middle East after tanker attacks last week.Brent crude futures were down 16 cents, or 0.3%, at $60.78 a barrel by 0215 GMT. They fell 1.7% in the previous session on concerns about slowing global growth.U.S. West Texas Intermediate (WTI) crude futures were down 12 cents, or 0.2%, at $51.92. They dropped 1.1% on Monday.