22.02 - today the markets are quite unstable as the dollar is showing good growth for the fifth day in a row and stocks are reacting to it.
Federal Reserve Governor says – US economy in perfect shape.
Randal Quarles – US Federal Reserve Governor joined the Central Bank in October 2017 and today is the day when he made his first official statement and it was a joyful one.
Quarles said that “The U.S. economy appears to be performing very well and, certainly, is in the best shape that it has been in since the crisis and, by many metrics, since well before the crisis. With a strong labor market and likely only temporary softness in inflation, I view it as appropriate that monetary policy should continue to be gradually normalized,” he said.
US government had also issued a statement that showed the confidence of the officials in economy’s surpassing the previously predicted numbers and going higher.
He hopes that the investment drought has come to an end and now the economy will have a perfect possibility to break for crisis indexes.
South Korean President under pressure.
South Korean President Moon Jae-in is finding himself in fire, as he has some very controversial decision to make. He is at risk of losing some political capital and thousands if jobs for the people if he refuses to fund and cuts General Motors presence in the country. On the other hand is he uses taxpayers money to fund the American car production company, he most definitely will face the backlash from the people.
Korean Development Bank is an owner of 17 percent of General Motors Korea and now, when this American conglomerate is thinking about closing three of South Korean factories, with in in Gunsan to be closed for sure, its profitability will surely fall.
Governmental official says, that “We [Korean government] cannot be free from the potential public backlash expected from helping a private company using taxpayers’ money”. But not to do so, means for thousands of people to lose their jobs. And, with the current situation in South Korea, where the young are struggling to find a job in the first place, this will be a serious hit to the hearts and minds of the population.
Stocks, currencies and stocks overview.
Asian stocks are taking a slope today, as dollar basket hit a week-long high and yield on a 10-year Treasuries grazed a four-year high point.
MSCI Asia Pacific fell 0.9%.
Topix Index, representing Japan is also down 0.9%.
Kospi Index fell 0.6 %.
Futures on the S&P 500 fell 0.3%.
Japanese currency is up 0.2 percent – 107.56 yen per dollar but seeing the strong greenback it is safe to say that it may be a long way for the Japanese currency to go before touching high points again.
Euro is little changed this trading morning – 1.2266 USD.
WTU crude is down 1.1 percent – 61.03 USD per barrel.
Gold fell 0.2 percent - $1.321.78 per ounce.
Silver is 16.419 USD per ounce.
