New York stock market mixed…Trump "Will negotiate well with Xi Jinping" [Morning Briefing]

◆ New York stock market, concern over failure of U.S.-China summit…mixed close

The three major U.S. stock indices showed mixed results on the 21st local time. U.S. President Donald Trump said he will meet Chinese President Xi Jinping in two weeks to discuss many things, but added that the meeting may not materialize, prompting caution. On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 46,924.74, up 218.16 points (0.47%) from the previous session. The Standard & Poor's (S&P) 500 index rose 0.22 points (0.00%) to 6,735.35, while the tech-heavy Nasdaq Composite fell 36.88 points (0.16%) to close at 22,953.67. The Dow set record highs intraday and at the close.

◆ International oil prices rise…U.S. government buys large volumes of strategic petroleum reserves

International oil prices were firm. As the ceasefire in the Gaza Strip became unstable, news that the U.S. government had secured strategic petroleum reserves is thought to have pushed up oil prices. At the New York Mercantile Exchange, November delivery West Texas Intermediate (WTI) crude oil closed at $57.82 per barrel, up $0.30 (0.52%) from the previous session. WTI prices had widened losses to -2.03% intraday before strong bargain buying flowed in and it closed higher.

◆ Trump "Will negotiate well with Xi Jinping…thanks to tariffs we also did well with South Korea and Japan"

U.S. President Donald Trump reiterated on the 21st local time regarding U.S.-China trade talks that "I will meet Chinese President Xi Jinping in South Korea and talk about many things," adding "I think we will do well in negotiations." At a luncheon he hosted at the White House Rose Garden Club that day, Trump said "we have also done well with Japan, South Korea, and Europe," and remarked "without tariffs we would not have been able to reach such agreements." He also said, "I have a good relationship with President Xi," and "I expect we can reach a fair agreement with him." He continued, "I want to make a good deal with President Xi, and I hope President Xi will make a good deal for China," adding "but that deal must be fair."

◆ Parliamentary audit today at overseas missions including the Cambodian embassy…issue of crimes against Koreans

The National Assembly continues the second-week schedule of the first government audit under the Lee Jae-myung administration today with five standing committees. Today, standing committees on foreign affairs and unification, education, health and welfare, culture, sports and tourism, and agriculture, food, rural affairs and maritime affairs will hold inspections targeting overseas missions as well as health and educational institutions and the Korea Coast Guard. The Asia division of the National Assembly's Foreign Affairs and Unification Committee will conduct an on-site audit at the Cambodian embassy, examining the Cambodian, Vietnamese, Thai and Lao embassies. Lawmakers from both parties are expected to intensively question the situation regarding abduction and confinement crimes against Koreans in Cambodia and urge active cooperation from the Cambodian government.

◆ Two-thirds of jeonse loans went to high-income earners…low-income 'loan exclusion'

Concentration of jeonse loans among high-income groups has worsened. Recently, two-thirds of total jeonse loan balances were concentrated in high-income groups, while the share for low-income groups has significantly decreased. According to data the Bank of Korea submitted to Park Seong-hoon, a People Power Party lawmaker on the National Assembly's Planning and Finance Committee, the amount of jeonse loans taken by high-income borrowers at the end of the second quarter of this year accounted for 65.2% of the total balance. The share of jeonse loan balances held by the top 30% income group has steadily increased in line with rising jeonse prices since the COVID-19 pandemic. It rose from 61.2% at the end of the first quarter of 2021 to 62.3% at the end of the first quarter of 2022, 62.4% at the end of the first quarter of 2023, 62.8% at the end of the first quarter of 2024, then jumped to 64.6% at the end of the first quarter of this year, and exceeded 65% in the second quarter.

◆ Strong winds make morning temperatures around 5°C 'chilly'…daytime highs 13–23°C

On Wednesday the 22nd, strong winds will cause temperatures to be lower than usual. Morning temperatures will be around 5°C, about 2–5 degrees lower than normal, and daytime highs are forecast to be 13–23°C. Especially in western regions, the temperature difference between day and night will be around 15°C, which is very large, so take care of your health. Occasional rain is expected in parts of Gangwon's Yeongdong, the east coast of North Gyeongsang, the northeastern mountains of North Gyeongsang, eastern South Gyeongsang, and Jeju Island.

Oh Jeong-min, Hankyung.com reporter blooming@hankyung.com