It's time now for an in-depth look at the global markets 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.
So, we just heard that the U.S. decision on auto tariffs is being put off by six months. That helped send Wall Street higher overnight -- the Dow and the S&P up about half a percent. Where are the global markets this afternoon?
China's and US economic number came in soft.
US Industrial production 5.4%, retail sales 7.2%, fixed asset investment rose 6.1%
All came below expectation.
US retails sales fell 0.2% mom. (expectation 0.2% growth)
Post tariff hike numbers disappointing.
Concerns continue for economic slowdown. However, expectation of policy easing rises. US market rose 0.58% SP, 1.13% Nasdaq
Here in Korea, the KOSPI started to slide pretty much just after today's open, ending in the 20-70 range. What happened there?
Korean market fell close to 1% for KOSPI and 1.3% for Kosdaq.
Clearly economic weakness we saw from both US and China are putting pressure on Korean market.
No tariff on cars for Korea was positive news but it was a decision to delay. Therefore, the risk of tariff still remains.
Korean Won 1190 level is putting pressure on investors. Foreign investors keep selling Korean equity 300bn of Kospi and 150 billion of Kosdaq.
Now, let's talk about the Huawei issue making headlines today. President Trump has basically banned U.S. companies from using Huawei equipment. So this rollercoaster ride goes on. How are investors taking this move?
US is focusing on winning the 4th industrial revolution competition.
5G investment is very important for the future.
US and Trump made it clear that they will be #1 in this business globally.
Will to all means necessary to win the war on technology.
US winning this is likely given that Tech sector market size is biggest for US. Over 50% of global market is US. Therefore, focus on such will result into heavy investment in this business.
I believe we need to continue to focus on our investment into US Nasdaq.
Of course protectionism will put pressure on equity market, but key factor is level of investment into the industry and the market size, which will grow aggressively.
Alright, Mr. Yoo. That's where we'll have to leave it today. Thanks so much for coming on today.