In-depth: Global market wrap-up _ 052019
- 5 years ago
증시 대담
It's time now for an in-depth look at the global markets, including Korea. 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'er welcome.
So, the won has fallen to the lowest rate against the dollar in two years or more. We're now flirting with 12-hundred won to the dollar. What happens if we break that threshold, and do you see a need for the financial authorities to intervene?
Last Friday, the local currency closed at 1,195.70 won to the dollar, marking a 28-month low against the greenback over the trade frictions between the United States and China. Today the local currency was trading at 1,192.10 won against the greenback as of 4:00 p.m., down 3.6 won from the previous session's close.
Concerns over excessive rise in the won-dollar exchange rate are increasing as the local currency approaches the threshold 1,200 won to the dollar. However, there is no need to give too much meaning to the threshold of 1,200 won. We need to pay more attention to the price volatility and speed of price change.
Some market participants suggest that South Korean financial authorities need to intervene in the foreign-exchange market to stem the decline of the local currency against the U.S. dollar. However, the possibility is still quite limited because the price volatility is within acceptable range so far.
The Kospi is back up today. It's taken a beating in recent weeks. Still not quite back to the 20-70 level yet though, and the Kosdaq down a bit. What was driving the trade today?
South Korean shares traded higher on Monday, but pared earlier gains as investors await the next move in the U.S.-China trade dispute. The benchmark KOSPI added 0.41 percent, while KOSDAQ composite lost 0.50 percent. Modest gains on Monday came even as financial markets remained on edge over the intensifying U.S.-China trade war, with the Trump administration last week adding Huawei Technologies to a trade blacklist.
Trade negotiations between the United States and China would not have clear conclusion in the near-term. Considering the weak local currency and issues over demand & supply in the stock markets, the investors’ appetite is not favorable, especially from the foreign investors. Investors need to take more conservative approaches as the stock markets are expected to show more volatile price movements.
Now, let's zoom out a bit. We have the trade war between the U.S. and China escalating, and it seems like a growing likelihood of an interest rate hike. What should be we be watching this week?
Here are some notable events coming up this week:
The minutes of the FOMC’s April 30-May 1 policy meeting released Wednesday may reveal the level of consensus around Federal Reserve Chairman Jerome Powell’s assertion that officials didn’t see a strong case for moving interest rates in either direction.
On Thursday, an account of the April meeting of the European Central Ban
It's time now for an in-depth look at the global markets, including Korea. 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'er welcome.
So, the won has fallen to the lowest rate against the dollar in two years or more. We're now flirting with 12-hundred won to the dollar. What happens if we break that threshold, and do you see a need for the financial authorities to intervene?
Last Friday, the local currency closed at 1,195.70 won to the dollar, marking a 28-month low against the greenback over the trade frictions between the United States and China. Today the local currency was trading at 1,192.10 won against the greenback as of 4:00 p.m., down 3.6 won from the previous session's close.
Concerns over excessive rise in the won-dollar exchange rate are increasing as the local currency approaches the threshold 1,200 won to the dollar. However, there is no need to give too much meaning to the threshold of 1,200 won. We need to pay more attention to the price volatility and speed of price change.
Some market participants suggest that South Korean financial authorities need to intervene in the foreign-exchange market to stem the decline of the local currency against the U.S. dollar. However, the possibility is still quite limited because the price volatility is within acceptable range so far.
The Kospi is back up today. It's taken a beating in recent weeks. Still not quite back to the 20-70 level yet though, and the Kosdaq down a bit. What was driving the trade today?
South Korean shares traded higher on Monday, but pared earlier gains as investors await the next move in the U.S.-China trade dispute. The benchmark KOSPI added 0.41 percent, while KOSDAQ composite lost 0.50 percent. Modest gains on Monday came even as financial markets remained on edge over the intensifying U.S.-China trade war, with the Trump administration last week adding Huawei Technologies to a trade blacklist.
Trade negotiations between the United States and China would not have clear conclusion in the near-term. Considering the weak local currency and issues over demand & supply in the stock markets, the investors’ appetite is not favorable, especially from the foreign investors. Investors need to take more conservative approaches as the stock markets are expected to show more volatile price movements.
Now, let's zoom out a bit. We have the trade war between the U.S. and China escalating, and it seems like a growing likelihood of an interest rate hike. What should be we be watching this week?
Here are some notable events coming up this week:
The minutes of the FOMC’s April 30-May 1 policy meeting released Wednesday may reveal the level of consensus around Federal Reserve Chairman Jerome Powell’s assertion that officials didn’t see a strong case for moving interest rates in either direction.
On Thursday, an account of the April meeting of the European Central Ban