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 Yoo, global strategist at Yuanta Securities.
Mr. Yoo, thank you for making time today.
On Wall Street overnight, the S&P hit a new all-time high for the first time in three months. Why is that, and what else do you see in the markets today?
The S&P 500 hit a record high on Monday, while the Nasdaq fell just short of its lifetime high touched in late July as a more civil tone between the United States and China lifted hopes for a possible trade deal and investors looked toward a Federal Reserve rate cut later this week.
Microsoft Corp shares climbed 2.46%, making the stock among the biggest boosts to each of three major indexes after the technology giant won the Pentagon's $10 billion cloud computing contract, beating out Amazon.com Inc
After rising as much as 0.71% to 3,044.08, the benchmark S&P closed up 0.56% at 3,039.34, topping the record high of 3,025.86 hit on July 26, while the Nasdaq ended the session less than 5 points below its closing high. The Dow Jones Industrial Average ended less than 1% away from its record closing level.
President Donald Trump said on Monday he expected to sign a significant part of a trade deal with China ahead of schedule but did not elaborate on the timing, building on optimism from Friday when Washington said it was "close to finalizing" some parts of a trade deal.
Economic data shows the trade war between the world's two largest economies has begun to take a toll on both countries, leading to worries about a global slowdown.
Global central banks have responded by easing monetary policy. The Federal Reserve is expected to follow that trend at its two-day policy meeting beginning on Tuesday, with high expectations that it will cut interest rates for a third time this year.
"After we finish earnings season and get through this Fed meeting, people will be looking to the trade deal," said Walter Todd, chief investment officer at Greenwood Capital in Greenwood, South Carolina. "Importantly, as you watch the economic numbers come in here and globally between now and year end, you want to continue to see incremental positive sequential changes. You want to get some confirmation that in fact growth has bottomed and has started to improve."
The KOSPI is also strongly higher today. What's happening in the Korean markets, and do you think this is a rally that will last?
Kospi started strong but fell to negative territory today. It broke above 2100 level. But now back down to 2089.
Kospi down 0.13%, Kosdaq up 0.57%
Mixed signals. Korean Won appreciation continues. It reached 1166.70. Peak was 1223.
As Chinese market taking a rest, Korean market is also taking some correction today.
Still US-China Trade deal is not complete. Therefore, many are still waiting until actual detail information of the deal.
I think overall strong growth in IT sector and 4th industrial revolution sector should continue in the future. Therefore, we expect Kospi to hit 2,200 before the year end.
The EU has agreed to extend the deadline for Britain to leave until the end of next January likely with an election in the UK before then. How has the market reacted to that news?
In his letter to Brussels, the UK prime minister urges the EU to make clear that a further extension beyond January is simply not on offer.
EU leaders, though, are highly unlikely to do as the PM asks.
Why? Well, in this very long Brexit process, there have been so many false dawns. More than three years on since the UK voted to leave the EU, the issue of "Brexit: yes or no and if yes, then what kind of Brexit?" has yet to be resolved in the UK.
Can anyone guarantee that it will definitely have been resolved in three months' time? Or that the newly negotiated Brexit deal will have been ratified by the UK Parliament and the EU Parliament by then? They can't.
And what has been the main focus of the EU in these many months of negotiations? To avoid a politically and economically damaging no-deal Brexit, while safeguarding the bloc's core interests.
Which is why the EU will want to keep the possibility of another extension up its sleeve come January.
Not because EU leaders relish the idea. Quite the opposite, actually. In the EU's ideal world, if the UK is definitely leaving (which EU leaders assume it is), then MPs would now be forced to focus on the new Brexit deal.
They would then ratify the deal along with the European Parliament, meaning that the UK's exit process was finished and phase two of Brexit could begin: negotiations for a comprehensive EU-UK trade deal.
Alright, Mr. Yoo. We'll have to leave it there today. Thanks so much for coming on.