time now for an in-depth look at the market news this afternoon and for that
I'm joined on the line by mr. Daniel you global strategist and you want to
securities mr. youth thank you for coming on today thank you for having me
today so despite the coronavirus emergency now global stocks in New York
closed at record highs what's happening in the global markets sure
as you said US market is hitting the record highs if you look at the Dow's
and SMP the Nasdaq all seems to be hitting the record highs Dow was up
between 6% S&P 500 was up point 73% Nasdaq was up 1.1 3% particularly the
rise of Nasdaq is quite astonishing that it is has broken to 9600 territories
question might be breaking 10,000 territories the global market as a whole
also seems to be recovering quite nicely if you look at the world ETF the MSCI
world ETF that price is actually hitting the record highs once again after
falling sharply by close to about 5 percent the reason for that is because
US market seems to continue to be doing well and also the main reason for this
such a strong rise despite all the concern about the novel coronavirus
issues that affects the global economy in terms of the growth rate it's clearly
because of the liquidity condition that's happening in the global market if
you look at the US they're injecting quite heavy amount of liquidity in the
short term also China obviously injecting as much as 174 billion US
dollars worth of liquidities they're lowering interest rate as well so
there's quite a bit of a amount of liquidity that's happening in the market
that it's overseeing the concern about the economic slowdown that you will see
in China if the number of patients rise slows down then they think that economic
growth rates up also recovered in the second quarter
people are betting that the economy recovery will happen in second quarter
despite the concern about the first quarter well here in Korea we see the
Kospi up was up quite a bit today after a couple of sessions of losses the Korea
Exchange says a volatility though has been high so far this year what's the
story in the Korean markets sure you said the Korean market is quite volatile
because of the its dependency on China if you look at the overall market
yesterday and the day before it corrected but today it's up again around
1% hitting over 2200 kospi and also 680 KOSDAQ caustic was also up about 0.9
percent if you look at the correction that we saw in terms of kospi as well as
cost AG was as high as 8% territories which is one US or the highest level of
the losses that we saw because of the coronavirus issues but it has recovered
quite nicely from its bottom in terms of the economic canonic impact the
bloomberg estimates that the korea will be one of the highest hit economy
because of China's slowdown it is probably the case because Korea exports
close to one third to China and that would be quite a bit of us showing
slowdown and also Korea is importing quite a bit of for the production's
there have a lot of production facilities based in China so Korea will
be affected to that but despite all that a kospi is doing well is because their
dependency on global economy and their dependency on u.s. is one of the highest
as well and that there's a huge amount of the collected throughout the global
scale as was Korea is thinking about probably lowering interest rate you know
to fight for this Korona impact well meanwhile we see oil prices have fallen
to a 13 month low how much of this is the corona
and where do you see oil going from here well quite a bit is from the Kauravas I
think if you look at the coral virus outbreak it seems to be a Black Swan for
oil and energy industries if I look at the most of the energy industry's
valuations especially in US and other countries it doesn't look cheap despite
that it had been one of the bidders underperformer main reason for it is
because of the shale gas productions increase that affects the price to be
much lower than used to be and clearly now with the demand from China slowing
down much faster than expected and the China is the number one importer of oil
even greater than us since 2017 so therefore if there's a slowdown in a
various factories productions and many areas of oil consumption from the China
clearly this will have a negative implication so once again the oil price
decline is not because of the production side but it is because of the demand
side slowing down - to China that will have one leg declined for the overall
range trading of oil prices in the past or price will range bound anywhere
between fifty five to sixty five dollars range I think it has gone down by at
least five dollars more the range bounce should be around 50 at the bottom and
probably on the top may be at most 60 dollars clearly the additional
production coming from the shale gas is a major concern
despite that the despite that though the the overall supply side can be adjusted
in order to keep the oil price at 50 dollars range so we think that it is at
the bottom and we can look for some opportunities but in terms of the upside
we think that it is limited alright mister you got it thanks so much for
coming on today and sharing your insights we appreciate it thank you very
much