War on Trade and Interest Rate Causes the World to 'sharp'...Until when is the fall?The market was shocked and terrified at how long the crash would continue.
Some predict that such an atmosphere will continue for some time due to the U.S.-China trade dispute and the U.S. interest rate hike.
This is Lim Se-heum.
The starting point for the global stock market decline is the U.S.-China trade dispute.
As the fighting between the two countries shows signs of a prolonged period, uncertainty is growing.
It is analyzed that the impact of the U.S. stock market, which had remained strong, spread across the world as the world's trade structure and financial markets were affected.
[Director of Tobias Adrian/IMF Monetary Capital : "The U.S.-China trade conflict will negatively affect investor confidence and thus adversely affect global financial market conditions."]
Our economy, which is highly dependent on the U.S. and China, is no exception.
In particular, the fear that China's economic slowdown will directly affect the real economy has greatly reduced investor sentiment.
This added to the concern that the difference would be greater if the rate increases faster than the U.S. when our benchmark rate is 0.75 percent lower than the U.S. rate.
While the won has been relatively strong due to strong exports and strong foreign currency reserves, the possibility of losing foreign capital is high if the economy fails to recover and the won continues to depreciate.
Also, the instability of emerging economies such as Turkey and India, which are more vulnerable to economic structure than ours, is not ignored.
[Jo Young-moo/LG Economic Research Institute]
The U.S.-China conflict is unlikely to be resolved immediately, rising oil prices and a bleak outlook for the dollar, leading to a possible prolonged correction.