◆ New York stock market close mixed after a runaway
The New York Stock Exchange ended mixed after extreme volatility. On the 5th local time, the first trading day after the Independence Day (July 4) holiday, the Dow Jones Industrial Average fell 0.42% to 3967.82, but the S&P 500 rose 0.16% to 3831.39, and the Nasdaq Composite also jumped 1.75% to 11,322.24. ended the chapter with The S&P 500, which fell more than 2% at the beginning of the session, ended the day strong, while the Nasdaq Composite also fell nearly 2% in the beginning and then closed the rebound. This is interpreted as the aftermath of increased concerns about an economic recession due to the inversion of long-term and short-term government bond yields, which is usually interpreted as a precursor to an economic recession.
◆ International oil price ‘plunging’
As fears of a global economic downturn grew, international oil prices, which had been soaring for a while, plummeted. On the same day, West Texas Intermediate (WTI) for delivery in August fell 8.2% to $99.50 per barrel from the previous trading day. It is the first time in about two months that WTI has fallen below $100 a barrel. September Brent crude also fell 9.5% to $102.77 a barrel. The Russia-Ukraine war, which actually triggered the rise in oil prices, continues, but oil prices have fallen sharply as there is a growing outlook that energy demand will contract due to the economic downturn in the future.
◆ Recession fears were greater than inflation
The chaotic appearance of the global financial market is interpreted as the greater concern about economic recession than inflation. On the 5th local time, the New York stock market showed mixed results by index, while the stock markets of major European countries plunged all at once. The euro fell to its weakest level in nearly 20 years, and the US dollar was strengthened, leading to a plunge in commodity prices, including international oil prices and gold prices. Gold for August delivery fell 2.1% from the previous trading day to $1763.90 an ounce, the lowest closing price this year.
◆ The first high-ranking party council of the 尹 government… Discussion on measures against high inflation
The People’s Power, the government, and the presidential office will hold the first high-level party council meeting since the inauguration of the Yun Seok-yeol government today (6th). At the party council meeting on this day, it seems that major issues of livelihood, such as high prices, will be on the discussion table. In addition to the nature of the first ‘reconciliation’ held after the inauguration of the new government, it is also a place for the government and the ruling party to work together for policy coordination ahead of the launch of the National Assembly in the late 21st century. Representatives Lee Jun-seok and floor leader Kwon Seong-dong from the party, Prime Minister Han Duk-soo and Deputy Prime Minister Choo Kyung-ho from the government, and Chief of Staff Kim Dae-ki and senior political affairs chief Lee Jin-bok from the presidential office are expected to attend.
◆ Continuing heat wave across the country… rain accompanied by thunder and lightning
Today, Wednesday, as the heat continues across the country, there will be showers everywhere. In inland areas of the country, rain with a precipitation of 5 to 40 mm falls, and in places where there are showers, there will be strong gusts of thunder and lightning. While the highest temperature is predicted to be 27-34 degrees Celsius, Seoul will rise to 32 degrees during the day. Fine dust concentration is expected to be ‘good’ or ‘normal’ in all areas, but Incheon, southern Gyeonggi, Daejeon, and Sejong are expected to show temporary ‘bad’ levels in the morning.
It was Kim Bong-gu, a reporter at Hankyung.com.