India, May 19 -- Indian shares fell modestly on Monday, with IT stocks leading losses after Moody's downgraded the U.S. credit rating by one notch to Aa1 from Aaa, citing rising levels of government debt and interest payments.
The rating agency warned it expects federal deficits to widen to almost nine percent of economic output by 2035, up from 6.4 percent last year.
Meanwhile, China has slapped duties of up to 75 percent on imports of plastics from the U.S., EU, Taiwan and Japan, signaling that trade tensions remain far from resolved.
Elsewhere, U.S. Treasury Secretary Scott Bessent told CNN News on Sunday that tariff rates will soon return to a "reciprocal" level if countries don't reach trade agreements during the 90-day pause.
"Pre...