[In-depth] Global market wrap-up _ 073119
- 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, thank you for coming on today.
You're welcome.
Investors are apparently anxious about the U.S.-China trade talks that started yesterday in Shanghai. That sent Wall Street lower on Tuesday. Korean stocks also sharply lower this afternoon. What's the story today here and globally?
In Wall Street, stocks finished lower Tuesday after President Donald Trump renewed his attacks on China, decreasing hope that the two largest world economies will reach a trade deal. Traders also braced for a key announcement on U.S. monetary policy.
Though a new round of U.S.-China trade negotiations started in Shanghai, the outcome could be no agreement or a harsher one. This puts on-going pressure on the equity markets. Traders also looked to the start of a Federal Reserve monetary policy meeting. The expected easing has supported risk asset prices worldwide so far.
Asian shares also weakened on Wednesday, rattled by fresh trade war concerns following threats from President Donald Trump to Beijing. Trump’s comments suggest that U.S.-China trade negotiations are not going well, which is a new negative factor for the markets. Japan’s Nikkei added 0.63%, while South Korea’s KOSPI declined 0.30% as of close.
It's July 31st, and so the Federal Reserve will be deciding on interest rates in a matter of hours -- widely expecting a cut of 25 basis points, which President Trump says would not be enough. What do you think the decision will be?
The U.S. Federal Reserve is widely expected to cut interest rates for the first time since the financial crisis more than a decade ago. Market expectations point to a quarter-point rate cut. I expect that U.S. Federal Reserve policy makers will not surprise markets this time. Investors will also look for clues from Powell about potential rate cuts later this year. Currently, traders are pricing in at least two rate cuts of 25 basis points before the end of the year.
Less clear is how Fed Chairman Jerome Powell will manage debate at the central bank about whether the stimulus is necessary. The Fed chief faces a strong possibility that the move will draw at least one dissent. With Powell already under attack by U.S. President Donald Trump for not doing enough to boost the economy, he could find his decision making even more difficult if some of the board members do not want to ease the monetary policy.
The U.S.-China trade talks in Shanghai. Both sides still far apart on their demands, the main ones especially. This is the first time they've met in about three months. What you think's going to happen?
Expectations for a breakthrough in the trade talks remain low. The two sides are further apart than they were three months ago, when negotiations broke down and each side blamed the other for derailing attempts to reach a deal.
The Shangha
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, thank you for coming on today.
You're welcome.
Investors are apparently anxious about the U.S.-China trade talks that started yesterday in Shanghai. That sent Wall Street lower on Tuesday. Korean stocks also sharply lower this afternoon. What's the story today here and globally?
In Wall Street, stocks finished lower Tuesday after President Donald Trump renewed his attacks on China, decreasing hope that the two largest world economies will reach a trade deal. Traders also braced for a key announcement on U.S. monetary policy.
Though a new round of U.S.-China trade negotiations started in Shanghai, the outcome could be no agreement or a harsher one. This puts on-going pressure on the equity markets. Traders also looked to the start of a Federal Reserve monetary policy meeting. The expected easing has supported risk asset prices worldwide so far.
Asian shares also weakened on Wednesday, rattled by fresh trade war concerns following threats from President Donald Trump to Beijing. Trump’s comments suggest that U.S.-China trade negotiations are not going well, which is a new negative factor for the markets. Japan’s Nikkei added 0.63%, while South Korea’s KOSPI declined 0.30% as of close.
It's July 31st, and so the Federal Reserve will be deciding on interest rates in a matter of hours -- widely expecting a cut of 25 basis points, which President Trump says would not be enough. What do you think the decision will be?
The U.S. Federal Reserve is widely expected to cut interest rates for the first time since the financial crisis more than a decade ago. Market expectations point to a quarter-point rate cut. I expect that U.S. Federal Reserve policy makers will not surprise markets this time. Investors will also look for clues from Powell about potential rate cuts later this year. Currently, traders are pricing in at least two rate cuts of 25 basis points before the end of the year.
Less clear is how Fed Chairman Jerome Powell will manage debate at the central bank about whether the stimulus is necessary. The Fed chief faces a strong possibility that the move will draw at least one dissent. With Powell already under attack by U.S. President Donald Trump for not doing enough to boost the economy, he could find his decision making even more difficult if some of the board members do not want to ease the monetary policy.
The U.S.-China trade talks in Shanghai. Both sides still far apart on their demands, the main ones especially. This is the first time they've met in about three months. What you think's going to happen?
Expectations for a breakthrough in the trade talks remain low. The two sides are further apart than they were three months ago, when negotiations broke down and each side blamed the other for derailing attempts to reach a deal.
The Shangha