time now for an in-depth look at the market news this afternoon and for that
i'm joined on the line by dr kim sewan professor of economics at ewa women's
university professor kim good afternoon thanks so much for making time today
well professor stocks were mixed overnight on wall street investors
relieved it's not another total route but tech stocks did take a hit of more than two percent
everyone wondering what the fed will do next month some are saying now at this point the
market could actually be reassured by a bigger rate hike what's the story in the global markets
well i just said devon u.s markets were mixed on tuesday between belgium's and nasdaq
thousands gained on 0.2 but nasa fell 2.4 percent as investors teaching shares of companies that
rallied during the pandemic uh particularly social media companies snapstock retraded 43 in a single
day the company issued a profit warning monday and set it a plan to slow hiring and spending
other tax stocks were affected by these snaps huge decline on on on yesterday the nasdaq
down 28 percent so far this year and it has been hit harder than other major u.s indexes
for example the broad-based mp500 by comparison is down 17 from the beginning of this year
today nikkei dropped 0.3 percent while chinese market moved up shanghai index gained 1.3 percent
and hong sang also gained 0.6 as 3 p.m in local time well korean stocks were a little higher
today they're doing better than those indices numbers you mentioned for the us in fact a little
shaky early in the morning but both indices here closing with decent gains perhaps also relief that
wall street's not down so much this week minutes are due out from the most recent fed meeting
people are watching that and the exchange rates coming down too tell us about the domestic market
today the benchmark cost be added 0.4 after yesterday's dropped by 1.6 percent cost stock also
gained 0.9 today uh domestic markets are actually moving without clear direction uh recently
the volatility increased by switching between positive and negative returns almost every day
and the trading volume also declined by 30 percent on daily basis compared to that of last year
this unstable market is expected to be continued until us and korea's key interest rates are
finally decided uh around early next year however large cap stocks are mixed today
samsung electronics dropped a 0.2 percent and the second largest cap lg energy solution also
dropped 2.7 today but samsung bio gained 2.8 and cacao also gained 1.5 today in investor group wise
institutional investors let cosby market rise with 513 billion on net purchase
well professor we could talk about inflation for a minute the expected inflation number among
consumers now is at a 10-year high they expect prices to rise over the next year by 3.3 percent
interestingly that's actually lower than the actual inflation we've been seeing lately which
is over four percent is that an indication that inflation could come down or is this a figure
we'd expect to lag real prices in some way tell us about that
a simple and clear implication of surging expected inflation is that the inflation
goes on even though current inflation factors like oil price rise and were in in ukraine disappears
uh consumers expected inflation hit the highest level in nine years as
oil and commodity prices are rising at a fast pace uh consumers in may expected the inflation to grow
3.3 percent up from previous months forecast of 3.1 rising rise according to bank of korea
this marked the highest level since april 2013 when the figure rose to 3.1 percent
the recent lifting of almost all pandemic related social distancing role is also feared to
add upward inflation pressure by encouraging people to increase spending since korean
government is expected to provide provide cash support on coronavirus hit small businesses which
also raises the price level further bank of korea is expected to hide its skin interest rate faster
right and speaking of that uh the bank of korea's monetary policy boards meeting tomorrow to decide
on interest rates the first board meeting since the bok's new governor i changed took office
and generally agreed that rates will go up the concern as ever though is what this means for
households whose debt's been growing fast what can we expect to come out of the bok meeting
almost all market participants uh like more than 90 percent of bond traders in korean
bond market expect the bank of korea will raise its interest rate this week actually tomorrow
to combat inflation and align with monetary tightening in major economies like u.s and eu
so if bank of korea is interest rate by a quarter percent tomorrow which is highly expected the key
interest rate in korea will be 1.75 percent bank of korea is raising its key interest rates from
last year uh by a quarter percent in almost every monetary policy meeting uh creates grappling with
uh rising inflation as we talked about uh pressure uh driven by soaring oil price and
the war in ukraine uh korean consumer inflation spiked four point eight percent on year in april
the fastest gain in more than 13 years uh as you said that the bank of korea governor
mitchell reed recently said he did not rule out the possibility of a
big step over 0.5 uh point key interest rate rise in the future we'll have to see what
happens tomorrow and check in again with you soon professor uh we'll leave it there for today though
thank you as always for sharing your insights with us we appreciate it thank you for having me today