증시 대담<br /><br />Now it's time to look at the stock market action today in Korea... and around the world.<br />And for that we're joined by Daniel Yoo, global strategist at Kiwoom Securities.<br />Thanks Mr. Yoo for your time this afternoon.<br />You're welcome.<br />So, U.S. stocks backtracked on Wednesday, down around a tenth of a percent. Seems like investors are still factoring in the risk of a recession and a related factor to that, the yield curve, which is still upside down.<br />Yes, the inversion in the yield curve continues as U.S. government bond yields continue to decline. <br />The benchmark U.S. 10-Year yield is currently about 2.40%. To be more specific, short-term rates (US 3-Month rate: 2.44, US 6-Month rate: 2.47) are now above the 10-year yield.<br />However, the most important thing to look at is the difference between 2-year yields and 10-year yields, and now the difference is still indicating 13 bps. During the dot-com bubble period, the difference between 2-year yields and 10-year yields was maintained by 0% for such a long time, the NASDAQ index also soared more than 200%. <br />Also, as the current loan-deposit ratio is lower than the dot-com bubble period and is at 77.4% which is very low, recession is unlikely anytime soon.<br />There was weakness also Wednesday in the main European markets. What's affecting Europe, and and where does Brexit fit into that?<br />European market in general had a sovereign debt crisis in 2011. Since then, it has been trying to solve the non-performing assets problem for the last 9 years. However, the Zone is not writing down the NPLs, so the problem-solving process is long-term. This is the reason for the long-term Brexit issue. <br />However, because of high level of provisions for the non-performing assets of Europe, the European economy will not fall into recession anytime soon. <br />What has been the effect of these movements in Europe and America on Korean stocks?<br />Korea's stock market as well as other markets in the Asia have been affected by the declines of the New York and Europe stock markets. <br />For now, as the trade war between the U.S. and China is ongoing, global stock markets are highly affected by the delay of an agreement between the two countries. <br />However, valuations on the global market are cheap at the current level. Therefore any correction will be limited as well. <br />Okay Mr. Yoo. That's where we'll have to leave it today.<br />Thanks for making time this afternoon.
