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 yu global strategist at yoanta securities mr you good afternoon thanks for coming
on good afternoon well the u.s market was closed on monday for independence day other markets were
higher for the most part overnight the exception in europe was germany in asia
today mostly higher as well with the exception of shanghai what's the story in the global markets
yes if you look at the u s market last week uh it did some correction where the doll fell by
about one point three percent smp 500 lost about two point two percent and also nasdaq was down
by about four point one percent uh but if you look at the futures market right now uh it is
up by somewhere between point five two point eight percent uh depending on the index uh i think that
there are quite a bit of uncertainty right now in regards to what's happening to economic recession
a lot of people are concerned about the current recession uh where the first quarter economic
growth rate was negative q1q and some people are expecting that the second quarter will be also
negative number uh maybe if that's the case then u s economies already in a recession uh that caused
the loss with corrections however though if we look into uh right now uh the market seems to be
recovering uh from the lows because uh there's possibilities that the inflation numbers are
coming down quite aggressively uh of course all price still remains very high but nevertheless
uh the core pc inflation remains to be uh fairly reasonably low uh and all that means is that uh
uh the economy might be uh having a very short-term recession rather than a long-term
recession uh we need to watch and see how the inflation number plays out next week uh and what
the fat will do uh in regards to the rate hike uh right now people are expecting 0.75 percent
uh rate hike in uh july 27th uh once that's done the rate of rise will be decreasing and if that's
the case the liquidity condition will be improving and therefore people are saying that maybe
uh aquarium uh the us market might be in a position to recover in the second half of
this year well korean stocks today had a bounce back apparently on some hope for a truce in the
war in ukraine other factors of course too big names higher for the most part but not car makers
they've been struggling with concern about a slowdown in demand overseas foreigners were
buying today though the exchange rate is still at thirteen hundred tell us about the domestic
market yes if you look at the cost be today it strongly recovered by one point eight percent
and also cost that is up by three point nine percent uh it's quite a bit of recovery uh today
but if you look at the past several days uh queer markets been kept going down the cosp was breaking
the record lows in our last a few years period uh and uh it did go down to as low as below
two thousand three hundred on time so uh there's a quite a bit of uncertainty regarding the korean
market uh if those you look at the valuation wise the price to book has fallen to point eight times
book and one year four uh p multiple falling to ten times level uh even such a uh cheap valuation
uh people are uncertain about what's happening to the inflation number uh and also what's happening
to the economic growth rate uh overall uh people are concerned that the us economy falling into
recession and china having some kind of uh a bit of a negative relationship for the time being
might cause the uh korea to go into a a very uh sizable recession uh that's the reason why
the market has been continued to be weak however though uh if you look at the over export numbers
as well as the overall uh nominal growth rate of gdp uh clear symmetry fairly in a reasonably good
position uh and as i said the valuation seems to be too cheap and therefore if uh looking
into the second half of this year uh cosby might be in a position to recover at least
what has fallen uh by uh if it has fallen by more than uh 25 percent then maybe the market can go up
by another uh from from that bottom around half of what has gone down so uh about at least around 20
to 30 percent recovery uh we're looking into that uh based on the evaluation being cheap
of course we have to wait and see how the economy session plays come uh come to play uh but for
the time being i think the market looks quite reasonably okay well the big story today of course
inflation coming in at six percent here in korea uh last month a year ago we were talking about
inflation at one to two percent uh the government was even concerned at one point that inflation
was too low uh what's happening with inflation and what kind of effects are we going to see
yes i think that if we are looking at the uh inflation numbers other than china uh most of the
other economies are suffering from the inflation uh the consumer price index for south korea as you
said was up by about six percent year or year for june uh and that number actually continues to go
uh it's showing a rising trend if you look at the main number it was up by 5.4 percent
uh and uh the number itself are coming in at six percent is above expectations uh clearly
the uncertainty about inflationary pressure for other economies are including korea is happening
uh if you look at the europe inflation numbers are coming at 8.6 percent uh you know as you
you can look at the u.s market is still at 8.6 percent uh all in all the inflation memberships
to very strong uh right now uh however though uh we think that the possibility inflation pressure
might be falling in the future because if you look at the raw material caused a lot of the
raw materials are showing a significant decline from the peak of the prices in the past about a
month or so uh we did see a copper prices and most of the metal prices agricultural prices
uh all falling by somewhere between 20 to 30 percent from its peak uh so if that's the case
then korea might be uh relatively doing better in the future compared to this month however
though korea's dependency on always extremely high and still the oil price remains to be very high
it is probably the only one commodity that is not showing a major correction from its peak
uh the peak was around 130 dollars uh right now is about 111 12 so it has fallen by around 15 percent
uh but nevertheless uh it seems to be extremely high and causing the inflation pressure in regards
to energy for korea to be very strong uh we'll wait and see how it thinks plays out but at least
we have seen the peak of the inflation numbers for the this month uh and maybe gradually we'll see uh
prices falling as the oil prices as well as other role models uh prices are falling as we see global
case got it all right mr you will leave it there for today and check in with you again later in
the week thanks so much for uh sharing your time with us today we appreciate it thank you very much