[In-depth] Global market wrap-up _ 082619
- 5 years ago
증시 대담
It's time now for an in-depth look at the market action as we start the week.
And for that, I'm joined on the line by Dr. Hwang Seiwoon, global strategist at Kiwoom Securities.
Dr. Hwang, thank you for coming on today.
Thank you.
China announced new retaliatory tariffs on the U.S. last Friday and that sent stocks on Wall Street plunging. The Dow down 2-point-3 percent, the Nasdaq 3 percent and the S&P over 2-and-a-half percent as well. Today Korean stocks are following suit. What's the story?
U.S. stocks slumped and Treasuries rallied as the trade dispute between the world’s two largest economies deepened. After the close of regular trading, President Donald Trump confirmed he will boost tariffs on Chinese imports in response to Beijing’s retaliation. Prospects for heightened tension rattled markets Friday, overshadowing speculation that the Federal Reserve will cut rates after Chairman Jerome Powell’s remarks. The trade war escalation rekindled concerns about the outlook for global growth that’s already looking shaky. The bond market’s recession indicator - the spread between 2- and 10-year rates - flirted with inversion again.
Asian shares all sank on Monday as the latest attack from the Sino-U.S. trade war shook confidence in the world economy and sent investors steaming to the safe harbors of sovereign bonds and gold, while slugging emerging market currencies. Japan’s Nikkei lost 2.31%, and Korea’s KOSPI and Hong Kong’s Hangseng fell 1.46% and 2.79% repectively.
At the G7 summit in France, President Trump was asked by a reporter whether he has any regrets about the trade war with China, and he said "sure, why not." He has second thoughts about everything, and that comment the White House now says was greatly misinterpreted. What do you think Trump meant by that?
After Trump appeared to soften his stance on China tariffs in Biarritz, France, his aides swooped in to explain he wasn't backing down. His aides’ statement underscored the president’s disdain for being seen as weak or backing down in the face of criticism. But it also reflected the back-and-forth nature of Mr. Trump’s trade confrontation with China, which has shifted between negotiations, threats conveyed over Twitter, and a series of escalating tariffs.
Last week, after China announced retaliatory tariffs on $75 billion in American goods, Mr. Trump reacted furiously. In a series of tweets, he condemned China’s intransigence and vowed to impose even higher tariffs on a broader set of Chinese products. It seemed on Sunday morning that his attitude had shifted until Ms. Grisham said it had not, at least for now. Considering all of Trump’s actions, we need to reasonably expect his back-and-forth strategies toward China to be maintained until the trade deal agreed.
This week we'll see Japan officially taking Korea off its white list of trading partners, the measure announce several weeks ago. Also, the Bank of Korea will hold the meeting in which it sets interest rates. That,
It's time now for an in-depth look at the market action as we start the week.
And for that, I'm joined on the line by Dr. Hwang Seiwoon, global strategist at Kiwoom Securities.
Dr. Hwang, thank you for coming on today.
Thank you.
China announced new retaliatory tariffs on the U.S. last Friday and that sent stocks on Wall Street plunging. The Dow down 2-point-3 percent, the Nasdaq 3 percent and the S&P over 2-and-a-half percent as well. Today Korean stocks are following suit. What's the story?
U.S. stocks slumped and Treasuries rallied as the trade dispute between the world’s two largest economies deepened. After the close of regular trading, President Donald Trump confirmed he will boost tariffs on Chinese imports in response to Beijing’s retaliation. Prospects for heightened tension rattled markets Friday, overshadowing speculation that the Federal Reserve will cut rates after Chairman Jerome Powell’s remarks. The trade war escalation rekindled concerns about the outlook for global growth that’s already looking shaky. The bond market’s recession indicator - the spread between 2- and 10-year rates - flirted with inversion again.
Asian shares all sank on Monday as the latest attack from the Sino-U.S. trade war shook confidence in the world economy and sent investors steaming to the safe harbors of sovereign bonds and gold, while slugging emerging market currencies. Japan’s Nikkei lost 2.31%, and Korea’s KOSPI and Hong Kong’s Hangseng fell 1.46% and 2.79% repectively.
At the G7 summit in France, President Trump was asked by a reporter whether he has any regrets about the trade war with China, and he said "sure, why not." He has second thoughts about everything, and that comment the White House now says was greatly misinterpreted. What do you think Trump meant by that?
After Trump appeared to soften his stance on China tariffs in Biarritz, France, his aides swooped in to explain he wasn't backing down. His aides’ statement underscored the president’s disdain for being seen as weak or backing down in the face of criticism. But it also reflected the back-and-forth nature of Mr. Trump’s trade confrontation with China, which has shifted between negotiations, threats conveyed over Twitter, and a series of escalating tariffs.
Last week, after China announced retaliatory tariffs on $75 billion in American goods, Mr. Trump reacted furiously. In a series of tweets, he condemned China’s intransigence and vowed to impose even higher tariffs on a broader set of Chinese products. It seemed on Sunday morning that his attitude had shifted until Ms. Grisham said it had not, at least for now. Considering all of Trump’s actions, we need to reasonably expect his back-and-forth strategies toward China to be maintained until the trade deal agreed.
This week we'll see Japan officially taking Korea off its white list of trading partners, the measure announce several weeks ago. Also, the Bank of Korea will hold the meeting in which it sets interest rates. That,