In-depth: Global market wrap-up

In-depth: Global market wrap-up


time now for an in-depth look at the
market news this afternoon and for that I’m joined by mr. Daniel you global
strategist at you want to security as mr. you thank you for making time today
thank you for your not splattering you today well the Federal Reserve’s latest
beige book is out and it says the US economy is growing modestly what else is
in the beige book and what do you make of it yes if you look at the page boom
comments the unemployment basically are quite low the employment is to rise
slightly over even as the labor market remain tight across the United States
fast says the best majority of its 12 districts want you to know difficulty in
hiring workers some context noted there of inability to fill jobs was
constraining the business growth the wage pressures are rising slightly in a
modest pace during the reporting period at the retailers and manufacturers are
in some districts mentioned higher cost which some attributed to the tariffs
issues most of districts reported as a stable stable moderate cost growing
consumer spending and increases in auto sales and tourism worsens across these
several districts overall basically the US economy seems fairly stable and the
cost rate remains to be well about two percent we think that this trend can
continue in the future and because of this the the overall market seems to be
moving you know right nicely in the right track well so with US growth
picking back up in the third and fourth quarters and some optimism on a trade
deal with China stocks on Wall Street have set new records for a fourth day in
a row now what’s the story there yes as you said the record high indices
are continue to happen in here if you look at the u.s. growth rate it is at
2.1 percent which is the growth rate and in terms of the consumer spending wise
it is rising by 0.3% month on month it is higher than expected and the overall
the wage increases are rising at around four point eight nine percent
yoi all this is indicating that the overall
economy is very very stable having said that if you look at the equity market
Dow the SMP and the Nasdaq continues to show rising trend yes there is some
indication that overheating is happening but nevertheless valuation seems to
remain quite attractive we think that the additional rise can happen till the
year end so we might have to you might see the center alley or the UN rally
well tomorrow we have the Bank of Korea releasing or having its last meeting of
the year to set interest rates and the outlook seems to be almost certain that
rates will stay where they are what’s the feeling among investors and how our
Korean stocks doing well Korean stocks are not doing too well you can see that
foreign investors continue to nestle or of Korean equity market and the growth
rate of Korea seems to be much below the intrinsic growth rate so if you’re
looking at the grocery next year in order to meet well about 2% we think
that they need to cut additional rate so they’re not going to cut it at tomorrow
probably but over the next course of six to twelve months we think that the BOK
will cut probably another 25 basis point you know to boost the economy not just
the just monetary policies but the fiscal policy needs to be effective as
well we need to see the supplementary budget or next year’s budget needs to
grow in a quite sizable amount to see the overall economy to grow so without
those we think that kospi will continue to be underperformer to relative to
global equity market as of today Kospi was also down caustic was down quite
sizably and this was affected by the remember
depreciation as was Korean want appreciations due to the signing of the
bill by us got it all right mr. Yeo that’s what I ought to leave it for
today great to get your insights as always thank you very much

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