Time now for an in-depth look at the market news on this Friday.
And for that, I'm joined on the line by Mr. Daniel Yoo, Global Strategist at Yuanta Securities.
Mr. Yoo, thank you for coming on.
A lot of volatility in stocks this week on the mixed messages coming out about the U.S.-China trade talks. Trump saying he's willing to wait, and then just today, Steven Mnuchin saying the talks are on track. What's the story today in the global markets and what's your outlook for the near term?
President Donald Trump is asking China to buy $40 billion to $50 billion of farm goods a year, which is significantly higher than the $8.6 billion the country bought last year, The Wall Street Journal reported
The administration is also demanding that China publicly announce its purchasing plans and say that they wouldn't depend on market conditions or China's trade obligations, sources told the Journal
The two countries are in talks to finalize a so-called phase one trade deal as 15% tariffs on $165 billion in Chinese imports are set to kick in Dec. 15.
Trump said Thursday that something could happen regarding those tariffs, but added they are not discussing that yet. He also said he believed trade talks with Beijing were going "very well."
Chinese Commerce Ministry spokesman Gao Feng said Thursday that the two sides remain in close communications regarding trade. He added that China "believes if both sides reach a phase-one agreement, relevant tariffs must be lowered."
Therefore market will take a sideline until Dec. 15.
US market was flat Dow 0.1%, S&P 0.15%, Nasdaq 0.05%
Europe down Euro Stoxx 50 0.32%, Germany Dax down 0.65%
Asian market slightly up.
In Korea, the Kospi has seen foreigners sell off for 21 sessions in a row. More than 5 trillion won worth of shares. Seems they're net buyers, though, in Taiwan and Japan. And today it looks like the selling continued on the KOSPI.
21 days net selling. Taiwan and Japan net buying, but Korea sold 5trillion won.
Foreign invesors net selling due to Geo political risk of Korea. US troop might move out of Korea due to cost regarding them. 1 trillon to 5 trillion rise asked.
Also, Korea's corporate governance and low dividend payout big concerns for foreign investors.
High level of tax, not enough investment into 4th industrial revolution related industries, too much regulations are all the risk regarding Korea.
Korea's upside will be limited.
Let's look at oil prices for a second. OPEC and its allies, including Russia, have been meeting in Vienna, and they're reportedly considering an additional production cut. What's the near-term outlook for oil prices?
Liquidity is ample in global financial market.
M2 growth rate 7.5% for US, Europe M1 growth rate over 7%.
This is feeding into the market/
Oil price will rise if economic growth rate slowing stops and moderate growth rate expected.
In terms of reduction, Opec and Russia decided to cut
Global oil-producing group OPEC reportedly considered cutting production by an additional 500,000 barrels per day as its biannual meeting kicked off Thursday in Vienna.
The reported 500,000 cut is larger than the numbers floated ahead of the meeting. It would bring the total production cut to 1.7 million barrels per day
On Friday, OPEC and its allies - known as OPEC+ and which includes Russia - will meet to finalize any proposed measures, including how any cuts would be implemented by each country.
Oil price will be range bound. Low end 55, high end 65. Right now at 58. Likely to go up more.
Alright, Mr. Yoo.
That's where we'll have to leave it on this Friday.
Thanks so much for making time today.