[In-depth] Global market wrap-up _ 060319
- 5 years ago
증시 대담
It's time now for an in-depth look at the global markets on this Monday.
And for that, I'm joined on the line by Dr. Hwang Seiwoon, research fellow at the Korea Capital Market Institute.
Dr. Hwang, thanks for coming on today.
You're welcome.
Last week, in the U.S., President Trump threatened Mexico with a 5 percent tariff if it doesn't stop the flow of illegal migrants to the American border, and that sent stocks on Wall Street down between 1-and-a-third and 1-and-a-half percent. What happened there and where do we stand now, with markets to open in New York in a few hours?
U.S. stocks extended a weekly loss to the worst since January, while Treasuries rallied a fourth day as the Trump administration’s trade war intensified. The S&P 500 also capped its worst month of the year, bringing its May decline past 6.5% after President Trump threatened to place escalating tariffs on Mexico. The Dow Jones Industrial average recorded a sixth weekly loss, the longest slump since 2011. The Mexican peso tumbled more than 2%, while the yen jumped.
Trump’s Mexico declaration and a report that China is planning to restrict rare-earths exports leave markets set for a turbulent end to what’s been a rough month for global stocks. Treasuries have benefited from haven demand, with yields on 10-year notes down to 2.15% Friday compared with 2.50% at the start of the month. There is just a level of unpredictability that I don’t think is helpful to the markets.
Buyers of Korean stocks now have a lower tax on transactions. It's now down to a quarter of a percent on all transactions irrespective of profit or loss. The Kospi up sharply today to around the 20-60 mark. All the top ten stocks by market cap saw gains. What were investors looking at today?
South Korean stocks traded higher Monday on gains in tech blue chips. The benchmark KOSPI advanced 12.5 points, or 0.61 percent, to 2,054 point as of close. The index started on a weak note but rebounded in late morning trade as foreigners scooped up market heavyweights. Tech blue chips advanced. Top market cap Samsung Electronics gained 2.35 percent, and major chipmaker SK hynix rose 1.23 percent.
A tax cut for stock trading came into effect today. Analysts are expecting the reduction to enhance stock transactions mildly, along with modest impact on trading volume and price level in the long term. The tax cut is also expected to boost arbitrage trade, a trading tactic that earns profit from price differences between markets, by institutional investors. However, from a long-term point of view, trading volume is affected more by market conditions than tax rates for stock transactions.
The U.S. threat of new tariffs on Mexico affected oil prices as well, which are down sharply. What do you see happening in oil?
West Texas Intermediate crude decreased 5.9% to $53.26 a barrel on Friday, the lowest since February. Front-month Brent crude futures were at $61.16 this morning, down 83 cents, or 1.3%, below Friday’s close. Oil pr
It's time now for an in-depth look at the global markets on this Monday.
And for that, I'm joined on the line by Dr. Hwang Seiwoon, research fellow at the Korea Capital Market Institute.
Dr. Hwang, thanks for coming on today.
You're welcome.
Last week, in the U.S., President Trump threatened Mexico with a 5 percent tariff if it doesn't stop the flow of illegal migrants to the American border, and that sent stocks on Wall Street down between 1-and-a-third and 1-and-a-half percent. What happened there and where do we stand now, with markets to open in New York in a few hours?
U.S. stocks extended a weekly loss to the worst since January, while Treasuries rallied a fourth day as the Trump administration’s trade war intensified. The S&P 500 also capped its worst month of the year, bringing its May decline past 6.5% after President Trump threatened to place escalating tariffs on Mexico. The Dow Jones Industrial average recorded a sixth weekly loss, the longest slump since 2011. The Mexican peso tumbled more than 2%, while the yen jumped.
Trump’s Mexico declaration and a report that China is planning to restrict rare-earths exports leave markets set for a turbulent end to what’s been a rough month for global stocks. Treasuries have benefited from haven demand, with yields on 10-year notes down to 2.15% Friday compared with 2.50% at the start of the month. There is just a level of unpredictability that I don’t think is helpful to the markets.
Buyers of Korean stocks now have a lower tax on transactions. It's now down to a quarter of a percent on all transactions irrespective of profit or loss. The Kospi up sharply today to around the 20-60 mark. All the top ten stocks by market cap saw gains. What were investors looking at today?
South Korean stocks traded higher Monday on gains in tech blue chips. The benchmark KOSPI advanced 12.5 points, or 0.61 percent, to 2,054 point as of close. The index started on a weak note but rebounded in late morning trade as foreigners scooped up market heavyweights. Tech blue chips advanced. Top market cap Samsung Electronics gained 2.35 percent, and major chipmaker SK hynix rose 1.23 percent.
A tax cut for stock trading came into effect today. Analysts are expecting the reduction to enhance stock transactions mildly, along with modest impact on trading volume and price level in the long term. The tax cut is also expected to boost arbitrage trade, a trading tactic that earns profit from price differences between markets, by institutional investors. However, from a long-term point of view, trading volume is affected more by market conditions than tax rates for stock transactions.
The U.S. threat of new tariffs on Mexico affected oil prices as well, which are down sharply. What do you see happening in oil?
West Texas Intermediate crude decreased 5.9% to $53.26 a barrel on Friday, the lowest since February. Front-month Brent crude futures were at $61.16 this morning, down 83 cents, or 1.3%, below Friday’s close. Oil pr