Fed's Yellen Hawkish Remarks Lead to New York Stock Market Closing Lower
US Fed's Possibility of Rate Cut Within the Year ↓
On the 5th, the KOSPI and KOSDAQ both started with a decline of over 1%. This is interpreted as a reaction to a statement by a U.S. Federal Reserve (Fed) official the previous day, suggesting there may be no pivot (direction change) within the year.
As of 9:05 a.m., the KOSPI was trading at 2,720.45, down 0.79% (21.55 points) from the previous day. The KOSPI opened at 2,713.96, down 1.02% (28.04 points) from the previous close.
Individuals and foreigners were net buyers of 67.7 billion KRW and 10.1 billion KRW respectively, but foreigners turned to net selling with 2.9 billion KRW. Institutions expanded their selling trend, net selling 78.5 billion KRW. In the futures market, only individuals were selling, offloading 120.3 billion KRW, while foreigners and institutions were buying 35.5 billion KRW and 67.4 billion KRW respectively.
Among the top 10 stocks by market capitalization, only Hyundai Motor (+0.44%) rose, while the rest declined. Notable drops include Samsung SDI -2.60%, SK Hynix -1.65%, NAVER -1.44%, and LG Energy Solution -1.32%. Samsung Electronics, the largest by market cap, fell 0.94% to 84,500 KRW.
The remarks by Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, are seen as having dampened market investor sentiment. On the previous day (local time), Kashkari said at an online event hosted by the investment magazine "Pensions & Investments" (P&I), "If inflation continues to hover, we have to question whether there is a need to cut interest rates."
This was interpreted as a clear indication that if inflation stops slowing, the Fed has no reason to cut rates within the year.
As of 9:10 a.m., the KOSDAQ was at 875.76, down 0.81% (7.14 points) from the previous day. The KOSDAQ opened at 872.47, down 1.18% (10.43 points) from the previous close. Individuals were dragging the index down with net selling of 35.2 billion KRW, while foreigners and institutions were net buyers of 27.2 billion KRW and 8.2 billion KRW respectively.
Among the top 10 stocks by market capitalization, only EcoPro (+0.71%) rose, while the rest declined. Notable declines include Enchem -3.28%, HPSP -2.91%, HLB -2.84%, and Alteogen -1.80%.
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