[In-depth] Global market wrap-up _ 061219
- 5 years ago
증시 대담
It's time now for an in-depth look at the global markets on this Wednesday.
And for that, I'm joined on the line by Dr. Hwang Sei-woon, research fellow at the Korea Capital Market Institute.
Dr. Hwang, thanks for coming on today.
You're welcome.
U.S. stocks are pretty close to their all-time highs now, but overnight the S&P and the Nasdaq were down slightly. Asian shares looking mixed. Take us through the action today.
In Wall Street, stocks closed little changed on Tuesday, taking a breather after posting strong gains to start off June. At this point, a failure to break out to new highs would be viewed as negative. We’re seeing evidence of more individual stocks in the S&P 500 making new highs. There’s a bit of an expectations the S&P 500 might be able to test those levels we saw in April. Sentiment turned so negative in May and now, as stock rebound in June, we’re seeing pessimism being replaced with optimism.
Asian stock markets were in a wary mood on Wednesday as the White House took a tough line on trade talks with China, while a looming reading on U.S. inflation could shuffle the odds for an early cut in interest rates. Japan’s Nikkei dropped just 0.09 percent, while Shanghai Composite lost 0.39 percent. South Korea’s KOSPI fell 0.24 percent as of close.
Now, Bank of Korea governor Lee Ju-yeol hinting at a rate cut, as we just heard, which is unlike what he's being saying for the past few months. Is a rate cut on the way, and how did the market respond to his comments?
Increasing concerns on economic slowdown would be the main reason for the drastic shift from his earlier commitment to standing pat. As external uncertainties have increased due to the U.S.-China trade dispute and slump in the semiconductor market, the BOK may need to take appropriate measures to accommodate changes in economic conditions. Since the start of the year, the economy has been showing signs of sluggishness amid a slump in exports and business spending.
The possibility of a rate cut seems to have had no immediate impact on the financial markets. Many economists expect the central bank will begin considering lowering the key interest rate in the last quarter, or when, and only when, the U.S. Fed lowers its own rate first. As price indicators in the financial markets already reflected this expectation, the comments from the top central banker would not generate additional sizable market changes.
In the finance ministry's report for June, it shows the central government running on a deficit of 25-point-9 trillion won, roughly 25 billion dollars. The administration, meanwhile, is looking at more spending to boost the economy. So there are concerns about fiscal soundness. What's behind the push for fiscal expansion in this situation?
That is because the Korean economy needs to manage heightened downside risks amid deteriorating external conditions. The possibility of the risks being drawn out couldn’t be ruled out, as external uncertainties have increased more
It's time now for an in-depth look at the global markets on this Wednesday.
And for that, I'm joined on the line by Dr. Hwang Sei-woon, research fellow at the Korea Capital Market Institute.
Dr. Hwang, thanks for coming on today.
You're welcome.
U.S. stocks are pretty close to their all-time highs now, but overnight the S&P and the Nasdaq were down slightly. Asian shares looking mixed. Take us through the action today.
In Wall Street, stocks closed little changed on Tuesday, taking a breather after posting strong gains to start off June. At this point, a failure to break out to new highs would be viewed as negative. We’re seeing evidence of more individual stocks in the S&P 500 making new highs. There’s a bit of an expectations the S&P 500 might be able to test those levels we saw in April. Sentiment turned so negative in May and now, as stock rebound in June, we’re seeing pessimism being replaced with optimism.
Asian stock markets were in a wary mood on Wednesday as the White House took a tough line on trade talks with China, while a looming reading on U.S. inflation could shuffle the odds for an early cut in interest rates. Japan’s Nikkei dropped just 0.09 percent, while Shanghai Composite lost 0.39 percent. South Korea’s KOSPI fell 0.24 percent as of close.
Now, Bank of Korea governor Lee Ju-yeol hinting at a rate cut, as we just heard, which is unlike what he's being saying for the past few months. Is a rate cut on the way, and how did the market respond to his comments?
Increasing concerns on economic slowdown would be the main reason for the drastic shift from his earlier commitment to standing pat. As external uncertainties have increased due to the U.S.-China trade dispute and slump in the semiconductor market, the BOK may need to take appropriate measures to accommodate changes in economic conditions. Since the start of the year, the economy has been showing signs of sluggishness amid a slump in exports and business spending.
The possibility of a rate cut seems to have had no immediate impact on the financial markets. Many economists expect the central bank will begin considering lowering the key interest rate in the last quarter, or when, and only when, the U.S. Fed lowers its own rate first. As price indicators in the financial markets already reflected this expectation, the comments from the top central banker would not generate additional sizable market changes.
In the finance ministry's report for June, it shows the central government running on a deficit of 25-point-9 trillion won, roughly 25 billion dollars. The administration, meanwhile, is looking at more spending to boost the economy. So there are concerns about fiscal soundness. What's behind the push for fiscal expansion in this situation?
That is because the Korean economy needs to manage heightened downside risks amid deteriorating external conditions. The possibility of the risks being drawn out couldn’t be ruled out, as external uncertainties have increased more