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, thank you for coming on today.
Wall Street was up overnight on hopes for an interest rate cut from the Fed. The S&P, the Dow and the Nasdaq all three touching record highs. What's the story today?
US stocks climbed on the back of Federal Reserve Chairman Powell's dovish statement. "We will respond appropriately," Powell said in the testimony of the House Financial Services Commission yesterday. "Uncertainties such as trade disputes and global economic slowdown will continue to pose a threat to the US economic growth," Powell said.
The Dow jumped 0.29 percent, the Nasdaq rose 0.75 percent, and the Russell 2000 rose 0.16 percent. The S & P 500 index was up 0.45 percent, while the Dow jumped 0.29 percent.
Better than expected job report put pressure since last Friday, but now lower interest rate environment possibility allowed the market to run.
KOSPI recovered nicely. Kosdaq as well.
Chinese market rose …
What's Powell's thinking here, and what's the outlook now in terms of how many times the Fed will cut rates this tyear and by how much?
Powell expressed the Fed's overall monetary policy stance through document before the hearing began. Despite the recent employment report and the US-China trade dispute "truce", uncertainty about the US economic outlook has been widening. "The sluggishness of major economic indicators in Europe and Asia has continued, and this is pushing the economic
outlook," he said. In addition, lower inflation is likely to be longer than the Fed had expected. In response to Mr. Waters' question, President Trump said he would not "do it" if the president ordered it to be dismissed.
Asked whether the labor market has been overheated in connection with the solid employment report, he said, "I can not find any evidence that the labor market is hot."
The June FOMC minutes after the hearing showed signs of interest rate cuts. The minutes include the fact that many of the members are aware of the need for additional "near term" stimulus if uncertainties remain on the US economy. However, there have been some members who insist that there is no "sufficient case" to support the rate cut.
Now here in Korea, the minimum wage council has convened to set next year's minimum hourly pay. Labor started out asking for it to be raised to 10-thousand won an hour, as President Moon pledged in his election campaign. Business, though, actually demanding a cut. What's going on with the minimum wage?
The minimum wage committee is expected to try to decide how much to set the minimum wage next year.
The minimum wage committee will hold the 12th power meeting at the government office in Sejong the afternoon.
Park Jong-sik, the chairman of the Minimum Wage Committee, said at the tenth power meeting on September 9, "I think it is desirable to end the discussion on the minimum wage level of 2020 by at least July 11."
The problem is that the differences between the labor and management sectors are so large that it is not easy to find the middle ground.
The labor and management sectors proposed a minimum wage of KRW 10,000 (up 19.8%) and KRW 8,000 (a cut of 4.2%) for the first year's minimum wage.
The minimum wage committee submitted a first amendment to the 11th General Meeting of the Labor and Welfare Committee on October 10, but the labor union submitted a revision of 9,570 won (up 14.6 percent) and the management of the business submitted 8,185 won (2.0 percent cut).
In particular, the labor unions strongly criticized that the administration kept the minimum wage cut even within the revision.
When the deliberation was stalled, the public committee recommended a one-digit increase rate for workers' committees and a second revision for user commissions above freeze rates. In fact, he proposed a one-digit increase in the minimum wage next year.
Workers' committees strongly opposed this, demanding retraction and adhered to the position that user commissioners should cut their minimum wage.
Alright, Mr. Yoo. That's where we'll have to leave it today.
Thanks so much for coming on and sharing your insights today.