In-depth: Global market wrap-up
- 4 years ago
Time now for an in-depth look at the market news this afternoon.
And for that, I'm joined on the line by Mr. Daniel Yoo, global strategist at Yuanta Securities.
Mr. Yoo, thank you as always for making time.
Thank you.
S&P has decided to keep its sovereign credit rating for Korea at double A. A stable outlook for the economy as well. Tell us about that.
Standard & Poor's (S&P Global Ratings) on Wednesday affirmed its AA sovereign credit rating for South Korea, despite earlier slashing its growth outlook for Asia's fourth-largest economy.
The global rating agency also maintained its stable outlook for the South Korean economy.
"The stable outlook reflects our expectation that geopolitical risks in the Korean Peninsula will not escalate to the point of hurting Korea's economic fundamentals over the next two years," the global rating agency said in a press release.
S&P has three times revised down its growth outlook for the South Korean economy this year from 2.6 percent in January to 2.4 percent in April and 2.0 percent in July, again slashing its growth outlook for the country to 1.8 percent last month.
"Beyond the outlook horizon, Korea's economic growth rate could decline toward the average level among its rating peers, as the country becomes wealthier and its labor force ages," the credit appraiser said.
Sluggish demands at home and abroad have largely been blamed for the apparently slowing growth of the South Korean economy.
The country's exports have dipped for 11 consecutive months since December while its consumer price increases have remained well below the long-term target of 2 percent for years.
The country also posted its first-ever negative inflation in September.
Still, S&P singled out North Korea as the largest factor affecting South Korea's credit rating.
Reports say the so-called phase one deal between the U.S. and China, which had been expected to be signed this month might be pushed to next month. How has that affected the markets?
"Wall Street has been hanging on every headline and bit of speculation on the where and when of the signing of the phase one trade agreement between China and the U.S.
"Stocks have reached new highs, due in large part to optimism about a possible deal, and now we "used up the good news and we're in this time where we need a booster shot," one analyst says.
"A report that the deal was delayed until December from November and would now probably be signed in Europe sent stocks sliding Wednesday.
""Once you find the location, you slap a date on it. Things get signed, and we move on. This would remove a lot of the headwinds," says one strategist.
"Ever since President Donald Trump said he and President Xi Jinping would meet to sign a trade deal, Wall Street has been hanging on every speculative word about where and when that signing might take place.
"So it was not surprising when stocks sold off Wednesday morning on a Reuters headline that quoted Trump administration sources as saying the phase one trade de
And for that, I'm joined on the line by Mr. Daniel Yoo, global strategist at Yuanta Securities.
Mr. Yoo, thank you as always for making time.
Thank you.
S&P has decided to keep its sovereign credit rating for Korea at double A. A stable outlook for the economy as well. Tell us about that.
Standard & Poor's (S&P Global Ratings) on Wednesday affirmed its AA sovereign credit rating for South Korea, despite earlier slashing its growth outlook for Asia's fourth-largest economy.
The global rating agency also maintained its stable outlook for the South Korean economy.
"The stable outlook reflects our expectation that geopolitical risks in the Korean Peninsula will not escalate to the point of hurting Korea's economic fundamentals over the next two years," the global rating agency said in a press release.
S&P has three times revised down its growth outlook for the South Korean economy this year from 2.6 percent in January to 2.4 percent in April and 2.0 percent in July, again slashing its growth outlook for the country to 1.8 percent last month.
"Beyond the outlook horizon, Korea's economic growth rate could decline toward the average level among its rating peers, as the country becomes wealthier and its labor force ages," the credit appraiser said.
Sluggish demands at home and abroad have largely been blamed for the apparently slowing growth of the South Korean economy.
The country's exports have dipped for 11 consecutive months since December while its consumer price increases have remained well below the long-term target of 2 percent for years.
The country also posted its first-ever negative inflation in September.
Still, S&P singled out North Korea as the largest factor affecting South Korea's credit rating.
Reports say the so-called phase one deal between the U.S. and China, which had been expected to be signed this month might be pushed to next month. How has that affected the markets?
"Wall Street has been hanging on every headline and bit of speculation on the where and when of the signing of the phase one trade agreement between China and the U.S.
"Stocks have reached new highs, due in large part to optimism about a possible deal, and now we "used up the good news and we're in this time where we need a booster shot," one analyst says.
"A report that the deal was delayed until December from November and would now probably be signed in Europe sent stocks sliding Wednesday.
""Once you find the location, you slap a date on it. Things get signed, and we move on. This would remove a lot of the headwinds," says one strategist.
"Ever since President Donald Trump said he and President Xi Jinping would meet to sign a trade deal, Wall Street has been hanging on every speculative word about where and when that signing might take place.
"So it was not surprising when stocks sold off Wednesday morning on a Reuters headline that quoted Trump administration sources as saying the phase one trade de