Trump's Tariffs Loom: Oil Prices Dip, India's Business Activity Softens, Markets React

Oil prices decreased on Monday as investors anticipated new tariff announcements from U.S. President Donald Trump and awaited updates on Russia-Ukraine peace talks. Brent Oil Futures expiring in May fell 0.4 percent to $71.88 per barrel, while West Texas Intermediate (WTI) crude futures decreased 0.3 percent to $67.67 per barrel. These declines occurred despite both contracts having recorded two consecutive weekly gains following new U.S. sanctions on Iranian oil. Trump is set to implement reciprocal tariffs on April 2, targeting countries with significant trade imbalances, including G-20 nations, India, Japan, China, and Vietnam. India's business activity growth softened in March, with the HSBC flash India Composite Purchasing Managers' Index slipping to 58.6. This was attributed to a slowdown in the services sector, despite manufacturing expansion. Indian businesses also expressed less optimism about future activity. Global markets showed mixed reactions to the impending tariffs. U.S. and European stock index futures rose, fueled by expectations that Trump's tariffs might be more targeted. However, officials in China and Australia cautioned about potential global economic shocks from U.S. trade policies.