time now for an in-depth look at the market news this afternoon and for that i'm joined on the line
by dr young junsuk professor of economics at the catholic university of korea professor young good
afternoon thanks for making time today happy to be here well last friday stocks on wall street
ended the week on a high note as u.s retail data came out strong a solid rebound for bank shares
across the three main indices gains of close to or more than two percent but for the week they
were all down or about flat what's the story in the global markets as we start a new week
okay well as you mentioned friday was very good day for u.s indices and the rising rates made
the investors very optimistic about bank stocks and the city corp and wells fargo
had their quarterly reports and they weren't as bad as some people feared whereas the previous on
previous day you had a report from j.p morgan chase and morgan stanley which was
about as what was expected so on thursday with those uh reports from jp
morgan chase and william stanley the market was a bit down but when wells fargo and city court beat
estimates or that better than expected it did uh drive the market up another uh factor driving the
market up was tech shares tech uh stocks that that isn't expected and the reason seems to be that
the uh concerns about the fed raising the rates by one full one percentage point at their meeting on
july 24th it seems to be shrinking very quickly so not only is the u.s market but the global markets
are reflecting that optimism that perhaps the fed will uh not raise the rates by one percentage
point but it seems pretty sure at this point that if they will raise it by 0.75 percentage points
u.s had some fairly good economic data coming out as well as you mentioned the
retail sales were higher than expected it rose one percentage point in june it was higher than the
projection of 0.9 so uh but we should mention that the rise in one percent was less than the
inflation rate so in terms of uh purchasing power or real spending uh probably fell a little bit
but uh if uh but because the numbers actually went up uh the fears of recession seems to be
less than what the market had previously expected that to after tax income also is reported to be
below longer term average levels it came up at 9.5 percent and along with the strong job market
data that came out two weeks ago it does seem like perhaps stock landing for the united states
is possible but for the week as you mentioned the market was down dow was down 0.2 percent
uh smp by 0.9 percent and nasdaq by 1.6 year-to-date dow is down fourteen point five
percent s p by nineteen point five percent and nasdaq is down by twenty seven point seven percent
uh for the international markets last week several central banks raised interest rates
south korea was one of them but it also included new zealand singapore and philippines and canada
raised the rates by a full percentage point europe they had a fairly good day on friday all of their
uh major markets stacks cac and let's say rose uh tech and dax rose by more than two percent uh but
uh the rising energy prices are now hitting european firms directly so we'll have to see
whether their optimism continues on asia on friday shanghai and hong kong had fallen after news that
china's second quarter growth had slowed more than expected and it grew only by zero point
four percent compared to four point eight percent in first quarter and much uh below 1.1 percent
reuter poll estimates this is the weakest growth since the beginning of the pandemic at first
quarter 2020 and there has been growing concerns about real estate bubbles and the financial sector
but the retail sales for china came in much stronger than expected at 3.1 percent and
along with the recovery in the other global market nikkei hyung and shanghai are all rising today
uh and the market not only in asia but around the world seems to be shrugging off the bad news but
there are some concerns growing now that the oil prices which hasn't fallen may rise again
later in the year when u.s institute's tougher sanction measures including
price cap on russian oil right and today the cost being the kosdak both closed with sizable gains
we saw foreigners return to buying on the cosby with chip makers and big tech leading the gains
shares of neighbor up around six percent tell us about the domestic market okay well korea
seems to be joining the global optimism as well uh the uh like the united states the big gains
took place in the financial institutions and tech some of the uh firms which gained
uh today were included sk heineck kakao and naver and the uh today cosby was up point nine percent
it ended today at twenty three hundred and seventy five point two two foreign spot individuals and
institutions sold co stack was up one point nine percent it ended today at 776.71 institutions
bought individuals and foreigners sold but the net amount sold by foreigners was minuscule at
2 billion won but year to date cosby is down minus 20.5 percent close back is down minus 25.2 percent
well this week professor will get the latest green book report from the finance ministry
on the state of the korean economy last month's report expressed concerns about
inflation slowing down investment a possible slowing of the recovery in korea's exports
what will you be looking for in this report and what else is on your radar this week
okay well the big question is whether korea is heading for a slowdown and how bad will the
slowdown be some of the other korean statistics that coming out is uh the may report on economic
activities for young people which is very politically sensitive on friday producers
price index will give us some idea on how bad the inflation has been in june as well as how far this
may last since producers price index is usually considered a leading indicator internationally
you have the european central bank uh releasing their consumer price index and inflation numbers
on tuesday and lately their inflation has been catching up to the us and they may even surpass
it because they have been hit directly by the uh ukrainian uh russian invasion into ukraine
and then some other interesting numbers will be u.s new housing building permits for june which is
a forward indicator for construction and economic activity and on wednesday we have the bank of
japan economic outlook and on thursday we have the european central bank monetary policy speech
which hopefully will give us some idea on how the global economy will go in the second half
of the year indeed we'll be looking forward to uh catching up with you later in the week
on all of that professor thank you so much for coming on the program we appreciate it thank you