[In-depth] Global Market Wrap-up _ 061919
- 5 years ago
증시대담
It's time now for an in-depth look at the global markets.
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.
Dr. Hwang, we are about a week away from the G20 summit in Japan.
President Trump tweeted that he had a good phone call with his Chinese counterpart, adding they will meet next week. This seems to have boosted investors' sentiment.
The Dow Jones is up by more than one and a third percent and the S&P 500 is up by almost one percent. How do you assess the global markets today?
Stocks ended sharply higher Tuesday as Wall Street increased bets on a U.S.-China trade deal after President Donald Trump said he will meet with his Chinese counterpart, Xi Jinping, at the upcoming G-20 summit. Sentiment was also lifted by hopes that the Fed will ease monetary policy later this year.
Asian share markets jumped on Wednesday as investors dared to hope the Federal Reserve would follow the lead of the European Central Bank and open the door to future rate cuts. Japan’s Nikkei rose 1.5% and South Korea’s KOSPI gained 1.1%.
There is reason for the optimism. However, we need to remember there have been a lot of negotiations between China and the U.S. where they seem to be close to a deal and then things fell apart. Hope for a U.S.-China trade deal diminished last month after both countries raised tariffs on billions of dollars worth of their goods. Trump also floated the possibility of imposing tariffs on more Chinese imports.
On Wednesday, the Fed will deliver its interest rate decision. What can we expect and what other factors apart from the Fed's announcement should we look out for?
The Fed is widely expected to strike a more dovish tone when it concludes its two-day meeting Wednesday. However, investors will monitor whether policymakers at the central bank will lay the groundwork for rate cuts later in the year. Traders are pricing in three rate cuts before year-end, according to market analysts. The meeting comes after jobs growth and manufacturing activity in May slowed down. This, coupled with lingering worries over the U.S.-China trade dispute, has led to increasing worries over the global economy.
Investors will also pay attention to the prospects of more stimulus measures from Europe. Mario Draghi, president of the European Central Bank, said Tuesday that officials are ready with stimulus if needed, adding to expectations for easier global conditions.
The Bank of Korea released minutes of its latest meeting yesterday. BOK chief Lee Ju-yeol has been hinting at a possible interest rate cut and members of the Monetary Policy Board also seem to be taking a more dovish tone. They will have a lot to think about after the Fed's decision. What is your interest rate forecast for later this year?
Several members of the Bank of Korea's rate-setting board expressed woes over the possibility of slower-than-expected economic growth duri
It's time now for an in-depth look at the global markets.
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.
Dr. Hwang, we are about a week away from the G20 summit in Japan.
President Trump tweeted that he had a good phone call with his Chinese counterpart, adding they will meet next week. This seems to have boosted investors' sentiment.
The Dow Jones is up by more than one and a third percent and the S&P 500 is up by almost one percent. How do you assess the global markets today?
Stocks ended sharply higher Tuesday as Wall Street increased bets on a U.S.-China trade deal after President Donald Trump said he will meet with his Chinese counterpart, Xi Jinping, at the upcoming G-20 summit. Sentiment was also lifted by hopes that the Fed will ease monetary policy later this year.
Asian share markets jumped on Wednesday as investors dared to hope the Federal Reserve would follow the lead of the European Central Bank and open the door to future rate cuts. Japan’s Nikkei rose 1.5% and South Korea’s KOSPI gained 1.1%.
There is reason for the optimism. However, we need to remember there have been a lot of negotiations between China and the U.S. where they seem to be close to a deal and then things fell apart. Hope for a U.S.-China trade deal diminished last month after both countries raised tariffs on billions of dollars worth of their goods. Trump also floated the possibility of imposing tariffs on more Chinese imports.
On Wednesday, the Fed will deliver its interest rate decision. What can we expect and what other factors apart from the Fed's announcement should we look out for?
The Fed is widely expected to strike a more dovish tone when it concludes its two-day meeting Wednesday. However, investors will monitor whether policymakers at the central bank will lay the groundwork for rate cuts later in the year. Traders are pricing in three rate cuts before year-end, according to market analysts. The meeting comes after jobs growth and manufacturing activity in May slowed down. This, coupled with lingering worries over the U.S.-China trade dispute, has led to increasing worries over the global economy.
Investors will also pay attention to the prospects of more stimulus measures from Europe. Mario Draghi, president of the European Central Bank, said Tuesday that officials are ready with stimulus if needed, adding to expectations for easier global conditions.
The Bank of Korea released minutes of its latest meeting yesterday. BOK chief Lee Ju-yeol has been hinting at a possible interest rate cut and members of the Monetary Policy Board also seem to be taking a more dovish tone. They will have a lot to think about after the Fed's decision. What is your interest rate forecast for later this year?
Several members of the Bank of Korea's rate-setting board expressed woes over the possibility of slower-than-expected economic growth duri