[In-depth] Global market wrap-up _ 062719
- 5 years ago
증시 대담
It's time now for a look at the market action this afternoon, and for that I'm joined on the line by Mr. Daniel Yoo, Global Strategist at Kiwoom Securities.
Mr. Yoo, thanks for coming on today.
You're welcome.
So, let's start on Wall Street ahead of the big summit with China. The S&P down around a tenth of a percent, the Nasdaq about a third. What are investors seeing out there?
US market seemed still jittery about the G20 meeting yet as it showed mixed signals.
Nasdaq was up 0.32% but that is after 1.5% decline on the previous day, while S&P 500 continues to fall. Even though Mnuchin: 'We were about 90% of the way' on China trade deal and there's a 'path to complete this' That is because on May 5th Trump spooked the market by raising tariff on China from 10% to 25% for 200 bn worth of goods.
"We were about 90% of the way there [with a deal] and I think there's a path to complete this," Mnuchin says in Bahrain.
"Trump is meeting his Chinese counterpart Xi Jinping on Saturday at the G-20 summit in Osaka, Japan.
"A Bank of America Merrill Lynch survey of investors finds that about two-thirds expected no deal this weekend, but no new tariffs either.
As for other markets, despite flat European market, Asian market did fairly well in expectation of better news flow on trade than before.
Japan up 0.92%, Shanghai 0.8%, Shenzhen 1.04% up
Korea also up 0.8% for Kospi and 0.1% Kosdaq
Meanwhile the Chairman of the Fed has taken this talk of a rate cut down a notch. He was speaking to the Council on Foreign Relations and he said essentially that the Fed won't be bending to political interest, which of course is a reference to President Trump. How big of an effect did that have on the market?
Also, Powell Fed Chairman wants to downplay the rate cut card as too high expectation is creating bubble for bond market. However, in my view, Fed will lower interest by 25~50 bps in the future, that will fuel the equity market performance
The market's mood today was vastly different from yesterday, when Fed Chair Jerome Powell's comments brought the bears out. Powell said the Fed is insulated from short-term political pressure. His comments came as President Trump is at loggerheads with the central bank. Trump would like to see the Fed cut rates faster. Powell's comments suggested that this may not happen, bringing the S&P 500 down 0.95% yesterday.
However, market is putting more weights on Trump.
Donald Trump has launched an extraordinary attack on the Federal Reservechairman, Jerome Powell, adding to a barrage of recent criticisms of the central bank, which he blames for slowing economic growth.
The US president has previously asserted that he has the power to demote Powell but denied that he had threatened to do so.
Speaking on Wednesday in an interview with Fox Business Network, Trump appeared to mock Powell, whom he chose to chair the Fed.
Trump said: "He's decided to prove how tough he is, because he's not going to get pushed around? Here's a guy, nob
It's time now for a look at the market action this afternoon, and for that I'm joined on the line by Mr. Daniel Yoo, Global Strategist at Kiwoom Securities.
Mr. Yoo, thanks for coming on today.
You're welcome.
So, let's start on Wall Street ahead of the big summit with China. The S&P down around a tenth of a percent, the Nasdaq about a third. What are investors seeing out there?
US market seemed still jittery about the G20 meeting yet as it showed mixed signals.
Nasdaq was up 0.32% but that is after 1.5% decline on the previous day, while S&P 500 continues to fall. Even though Mnuchin: 'We were about 90% of the way' on China trade deal and there's a 'path to complete this' That is because on May 5th Trump spooked the market by raising tariff on China from 10% to 25% for 200 bn worth of goods.
"We were about 90% of the way there [with a deal] and I think there's a path to complete this," Mnuchin says in Bahrain.
"Trump is meeting his Chinese counterpart Xi Jinping on Saturday at the G-20 summit in Osaka, Japan.
"A Bank of America Merrill Lynch survey of investors finds that about two-thirds expected no deal this weekend, but no new tariffs either.
As for other markets, despite flat European market, Asian market did fairly well in expectation of better news flow on trade than before.
Japan up 0.92%, Shanghai 0.8%, Shenzhen 1.04% up
Korea also up 0.8% for Kospi and 0.1% Kosdaq
Meanwhile the Chairman of the Fed has taken this talk of a rate cut down a notch. He was speaking to the Council on Foreign Relations and he said essentially that the Fed won't be bending to political interest, which of course is a reference to President Trump. How big of an effect did that have on the market?
Also, Powell Fed Chairman wants to downplay the rate cut card as too high expectation is creating bubble for bond market. However, in my view, Fed will lower interest by 25~50 bps in the future, that will fuel the equity market performance
The market's mood today was vastly different from yesterday, when Fed Chair Jerome Powell's comments brought the bears out. Powell said the Fed is insulated from short-term political pressure. His comments came as President Trump is at loggerheads with the central bank. Trump would like to see the Fed cut rates faster. Powell's comments suggested that this may not happen, bringing the S&P 500 down 0.95% yesterday.
However, market is putting more weights on Trump.
Donald Trump has launched an extraordinary attack on the Federal Reservechairman, Jerome Powell, adding to a barrage of recent criticisms of the central bank, which he blames for slowing economic growth.
The US president has previously asserted that he has the power to demote Powell but denied that he had threatened to do so.
Speaking on Wednesday in an interview with Fox Business Network, Trump appeared to mock Powell, whom he chose to chair the Fed.
Trump said: "He's decided to prove how tough he is, because he's not going to get pushed around? Here's a guy, nob