In-depth: Global stock wrap-up
- 5 years ago
증시 대담
It's time to look at the market action today in Korea and around the world.
And for that we're joined on the line by Mr. Daniel Yoo, global strategist at Kiwoom Securities.
Mr. Yoo, thanks for making time this afternoon.
You're welcome.
We now have the minutes from the Fed policy meeting from last month. The committee members are keeping interest rates where they are, but they leave the possibility open that they could raise them down the road. How did investors take this today?
Minutes from the Federal Reserve's March 19-20 meeting say some policymakers under certain circumstances could "judge it appropriate to raise the target range for the federal funds rate modestly later this year."
The minutes say "Several participants noted that their views of the appropriate range for the federal funds rate could shift in either direction."
But the summary also says: "A majority of participants expected that the evolution of the economic outlook and risks to the outlook would likely warrant leaving the target range unchanged for the remainder of the year."
Clearly Trump administration talking about rate cut as large as 50 bps seems to be not in the picture despite the global economic slowdown (Recession worries).
The suggestion of a modest move implies a one quarter-point adjustment in the current target range of 2.25 percent to 2.5 percent. Futures markets are currently pricing in no chance of an increase and in fact a 55% chance that the Fed might choose to cut rates. The expectation for a rate cut following the minutes is probably just wishful thinking.
Korean markets finished a little lower today. What was driving that?
Korean market was pretty much flat on the news. Also today was the option maturity date for Korean market. KOSPI ended ??% change, and KOSDAQ was up ???%.
Clearly, Korean market responded differently for KOSPI and KOSDAQ.
With Fed not showing signals that it'll cut rates, the Korean market seems to taking a breather. Still worries of a global economic slowdown are affecting the Korean equity market negatively.
Bio sector government support acting positively on KOSDAQ
Government decided to provide 477.9 billion support (over 400 million dollars) (45.5billion rise from last year)
This is allowing the Kosdaq (which is 40% of the index related to healthcare) to move up, as well as KOSPI's pharma sector to move up.
Today we have President Moon in Washington to meet with President Trump. North Korea is also holding high-level meetings that could touch on nuclear diplomacy. How if at all has that influenced Korean stocks?
Market expectations and concerns about North Korea-related stocks both exist ahead of the summit meeting. For resolving the North Korean nuclear issue, there are many stocks that get affected.
Share prices have been rising in anticipation of major summit talks, hoping for NK Nuclear treat resolving, but the situation has been shaken sharply before and after the talks as North and US did not agree on any terms, and t
It's time to look at the market action today in Korea and around the world.
And for that we're joined on the line by Mr. Daniel Yoo, global strategist at Kiwoom Securities.
Mr. Yoo, thanks for making time this afternoon.
You're welcome.
We now have the minutes from the Fed policy meeting from last month. The committee members are keeping interest rates where they are, but they leave the possibility open that they could raise them down the road. How did investors take this today?
Minutes from the Federal Reserve's March 19-20 meeting say some policymakers under certain circumstances could "judge it appropriate to raise the target range for the federal funds rate modestly later this year."
The minutes say "Several participants noted that their views of the appropriate range for the federal funds rate could shift in either direction."
But the summary also says: "A majority of participants expected that the evolution of the economic outlook and risks to the outlook would likely warrant leaving the target range unchanged for the remainder of the year."
Clearly Trump administration talking about rate cut as large as 50 bps seems to be not in the picture despite the global economic slowdown (Recession worries).
The suggestion of a modest move implies a one quarter-point adjustment in the current target range of 2.25 percent to 2.5 percent. Futures markets are currently pricing in no chance of an increase and in fact a 55% chance that the Fed might choose to cut rates. The expectation for a rate cut following the minutes is probably just wishful thinking.
Korean markets finished a little lower today. What was driving that?
Korean market was pretty much flat on the news. Also today was the option maturity date for Korean market. KOSPI ended ??% change, and KOSDAQ was up ???%.
Clearly, Korean market responded differently for KOSPI and KOSDAQ.
With Fed not showing signals that it'll cut rates, the Korean market seems to taking a breather. Still worries of a global economic slowdown are affecting the Korean equity market negatively.
Bio sector government support acting positively on KOSDAQ
Government decided to provide 477.9 billion support (over 400 million dollars) (45.5billion rise from last year)
This is allowing the Kosdaq (which is 40% of the index related to healthcare) to move up, as well as KOSPI's pharma sector to move up.
Today we have President Moon in Washington to meet with President Trump. North Korea is also holding high-level meetings that could touch on nuclear diplomacy. How if at all has that influenced Korean stocks?
Market expectations and concerns about North Korea-related stocks both exist ahead of the summit meeting. For resolving the North Korean nuclear issue, there are many stocks that get affected.
Share prices have been rising in anticipation of major summit talks, hoping for NK Nuclear treat resolving, but the situation has been shaken sharply before and after the talks as North and US did not agree on any terms, and t