Trump Extends US-China Tariff Truce by 90 Days... New York Stock Exchange Ends Weak [Morning Briefing]

◆ New York Stock Exchange closes lower ahead of July CPI release

The New York Stock Exchange closed lower ahead of the July release of the US Consumer Price Index (CPI). On the 11th local time, the Dow Jones Industrial Average ended at 43,975.09, down 0.45% from the previous session; the S&P 500 Index closed at 6,373.45, down 0.25%; and the NASDAQ Composite Index settled at 21,385.40, down 0.30%. The market expects the CPI growth rate in July to accelerate more than in June. If it is confirmed that inflation has worsened, there could be increased division within the Federal Reserve over lowering interest rates. Investor sentiment also weakened as President Donald Trump of the United States downplayed the upcoming US-Russia summit set for the 15th as merely an 'exploratory meeting.'

◆ US extends 'tariff truce' with China by 90 days... "China has handled negotiations well"

The United States has extended its tariff truce with China by 90 days. President Trump signed an executive order extending the temporary suspension of tariffs on Chinese goods, which was set to expire that day, for another 90 days. Having previously imposed additional tariffs as high as 115%, and with both sides agreeing in April to cancel 91% points (P) and delay the application of 24%P for 90 days, both nations reached further consensus during the third high-level trade talks last month (28th–29th) to extend the truce for another 90 days. However, President Trump had delayed making a final decision until now. Regarding this, President Trump stated, "China has handled the deal very well, and my relationship with President Xi Jinping is good."

◆ Trump: "Washington, D.C. is uncontrollable... Deploying National Guard to strengthen security"

President Trump held a press conference announcing crime eradication measures in the capital, declaring that the federal government will directly control the police operations in Washington, D.C. With crime and violence in Washington, D.C. having reached an uncontrollable state, he announced he would deploy the National Guard to strengthen law enforcement. President Trump said, "We will deploy 800 personnel as a first step, and we can add more if necessary," calling it a "historic act to save our nation's capital from crime, violence, riots, and filth." However, it is pointed out that since the federal government would be effectively taking over law enforcement in Washington, D.C., this measure could be controversial.

◆ Former president and first lady both face arrest... Kim Keon-hee's 'day of fate'

Min Joong-ki's special prosecution team has begun procedures to detain Kim Keon-hee, and a pretrial detention hearing to decide her arrest will be held on the 12th at the Seoul Central District Court. With former President Yoon Suk-yeol already detained and held at the Seoul Detention Center, this could mark the first time in Korean history that a former president and first lady are simultaneously in custody. Kim Keon-hee is accused of participating in the Deutsch Motors stock price manipulation case and intervening in People Power Party candidate nominations. She is also suspected of illicitly receiving requests for denominational matters from the Unification Church. The special prosecution team emphasizes the need for arrest, attributing a high risk of evidence destruction to Kim Keon-hee, while her side argues she has cooperated with the investigation and has no reason to flee. The decision regarding her arrest is expected late this afternoon or early the next morning.

◆ Heavy rain in southern regions... Feels like 31°C, 'sweltering heat'

On Tuesday the 12th, rain is expected mainly in the southern regions, with showers also forecast for some areas of Chungcheong. Other regions are expected to remain mostly clear due to the influence of high pressure. According to the Korea Meteorological Administration, Jeonnam coastal regions and areas of Gyeongnam will receive 20–60mm of rain. Jeju will see 10–60mm, while Gwangju, inland Jeonnam, Daegu, and Gyeongbuk will get 5–40mm. Daejeon, Sejong, South and North Chungcheong Provinces are expected to receive around 5mm, and 5–20mm of local showers are expected in northern Gyeonggi Province. The minimum morning temperature will range from 19–24°C, and the maximum daytime temperature will be 25–33°C, with regions affected by rain or showers potentially experiencing a heat index exceeding 31°C. Fine dust levels are expected to remain at ‘good’ to ‘moderate’ levels in all regions.

Oh Se-seong, Hankyung.com reporter, sesung@hankyung.com