(fxcue news) - Indian shares look set to open lower on Wednesday after the Indian Armed Forces launched precision missile strikes under 'Operation Sindoor', targeting nine terrorist sites in Pakistan and Pakistan-occupied Kashmir (PoK) in a strong response to the brutal Pahalgam terror attack. Pakistan Prime Minister Shehbaz Sharif accused India of launching "a cowardly attack" and said the heinous act of aggression will not go unpunished. Rising trade uncertainty and caution ahead of the Federal Reserve's policy decision later in the day also keep investors on edge. Media reports suggest that U.S. Senators Rick Scott and Elizabeth Warren are pushing for an independent watchdog at the Federal Reserve to "aggressively hold" senior Fed officials accountable. Meanwhile, textile, apparel and AlcoBev companies could be in focus after the U.K. and India have agreed a trade deal after three years of talks. Benchmark indexes Sensex and Nifty ended modestly lower on Tuesday, with pharma and PSU bank stocks leading losses. The rupee settled 15 paise lower at 84.45 against the greenback due to ongoing tensions between India and Pakistan. Asian stocks were mostly higher this morning, with mainland China and Hong Kong markets leading regional gains, on confirmation that U.S. and Chinese officials are set to start formal trade talks this week. Additionally, in an effort to shore up growth, China's central bank said it would cut its key policy rate by 10 basis points and lower the reserve requirement ratio by 50 basis points. The dollar climbed against most major currencies in Asian trade while gold fell more than 1 percent. Treasuries moved higher after a solid $42 billion sale of 10-year bonds. Oil extended gains after rising more than 3 percent on Wednesday on signs of weakening production in the U.S. and higher demand in Europe and China. U.S. stocks fell for a second straight session overnight as President Donald Trump's tariff threats on entertainment and pharma sectors along with uncertain remarks on global trade agreements dampened hopes for progress on tariff resolutions. Trump downplayed trade negotiations, saying he would prescribe tariff levels and trade concessions for partners looking to avoid higher duties. During a White House meeting with Canadian Prime Minister Mark Carney, Trump expressed frustration with the media's repeated questions about when the U.S. will sign new trade deals. "Everyone says, 'When, when, when are you going to sign deals?'" "We don't have to sign deals, they have to sign deals with us. They want a piece of our market. We don't want a piece of their market." "I wish they'd ... stop asking how many deals are you signing this week?" "Because one day we'll come and we'll give you 100 deals." Meanwhile, data showed U.S. trade deficit widened to a record high in March, raising concerns about Trump's tariff strategy. The Dow gave up 1 percent, the tech-heavy Nasdaq Composite shed 0.9 percent and the S&P 500 declined 0.8 percent. European stocks closed broadly lower on Tuesday, with upcoming central bank meetings, German politics and shifting U.S. trade policy in focus. The pan European STOXX 600 dipped 0.2 percent, snapping its 10-day winning streak. The German DAX and France's CAC 40 both fell by 0.4 percent while the U.K.'s FTSE 100 ended marginally higher as trading resumed after a long holiday weekend.