January 25 has brought more luck for Asian markets while knocking greenback on its' back as the national US currency once again hit three-year low. Is weak dollar good or bad for world economy in general and USA in particular.
Asian stocks pare losses as US currency is sliding lower.
Greenback is extending its long fall and every day it is renewing three-year lows. And Asian stocks are strengthening compared to dollar. Despite world market being shaky and unstable because of Trump’s office policy.
MSCI Asia Pacific is gaining more weight on South Korean and Shanghai’s markets even though and it completely balances off the losses it has experienced in Tokyo and Hong Kong.
Yen is gaining strength costing 109 per dollar.
Hope for Koreas’ reconciliation.
The whole world was watching how currently divided countries of Korean peninsula were sitting down to discuss cooperative participation in this year’s Winter Olympics that will take place next month in South Korean PyeongChang. Two long-separated countries’ teams have come to an agreement to come out united under one flag. But is there hope for unification?
On the day of Wednesday, January 24, 2018 North Korean ice hockey team have come across the militarized zone and joined their neighbors’ national team. After that, surprisingly, North Korea have called for all the Koreans “home and abroad to call for contact and cooperation between North and South Korea”.
The two countries seem to yearn to be together under one flag, just like the athletic teams will soon be for the opening Olympic ceremony. The official from the North said that that “military tensions” are the reason for the division of the countries and that only “outside forces are able to somehow change the situation”.
Meanwhile upon arriving to the south part of the peninsula, North Korean team was greeted with the demonstration holding the sign’s calling to behead North Korean leader Kim Jong Un.
Head of American treasury is “pro” weak dollar.
US Treasury Secretary Steven Mnuchin has made several remarks on Wednesday that have raised some eyebrows around the world. Seems like Trump’s policy of “America always first” Is spreading and threatens to grow into real economic war between America and China.
On Friday Trump is scheduled to take the floor at Davos Economic Forum and the statements of rough monetary policy are contradicting a world trend of cooperation and anti-protectionism.
At the same time Commerce Secretary Wilbur Ross says that Mr. Mnuchin is not pro-weak dollar per se, as the economic war is already on-going for several years. He claimed, “Trade war has been in place for quite a little while, the difference is the U.S. troops are now coming to the ramparts.”
At the same time the government shutdown and tightening the policies, withdrawal from Climate Change Agreement and threats of stepping away from NAFTA have not only put Mr. Trump in hot water, but also weakened greenback.
Mr. Mnuchin also tried to protect President Trump’s “America always first” policy by saying that it doesn’t mean to harm other countries. Mr. Trump is simply trying to protect American jobs and markets just as he thinks the rulers of other countries’ will protect theirs.
Stocks, currencies and crude overview.
Euro has fallen by 0.05% and costs $1.2402.
Pound is gaining more weight by raising to the mark of $1.4264.
Yen is showing the best and highest results in the last 20 years with rising by 0.05% to the point of costing 109 yen per one dollar.
Silver has gained 0.26% in the last 24 hours and now costs $17.571 per ounce. Gold’s price for the same amount is down by almost 0.05% - $1.358.19.
WTI crude has reached the point of $66.35 per barrel – this is the highest price within the time span of 3 years.
In the last 24 hours S&P 500 has fallen by 0.06% and is traded at the mark of $2,837.54.
Nasdaq lost 0.61% - $7.145.07 per piece.
MSCI Asia Pacific Index fell by 0.4 percent – the worst day for the index in the last six weeks.
