[Good Morning Market] "Tariff-Driven Uncertainty Continues... KOSPI Expected to Open Lower"

On July 17, the KOSPI is expected to open lower. The sharp decline of ASML and downward revisions of earnings forecasts due to tariff-related factors are anticipated to have an impact.

Reuters Yonhap News

On the 16th (local time), the Dow Jones Industrial Average closed at 44,254.78, up 231.49 points (0.53%) from the previous trading day. The S&P 500, which focuses on large-cap stocks, also rose by 19.94 points (0.32%) to 6,263.70. The Nasdaq closed at 20,730.49, up 52.69 points (0.25%).

The New York stock market started strong in early trading after the U.S. Producer Price Index (PPI) for June came in flat compared to the previous month, falling short of market expectations. Later, all three major indexes reversed course and turned negative following reports that U.S. President Donald Trump was planning to dismiss Federal Reserve Chair Jerome Powell. However, the market rebounded after President Trump told reporters at the White House that "the possibility is very low" regarding the dismissal of Chair Powell, leading the indexes to close higher.

Lee Sunghoon, a researcher at Kiwoom Securities, explained, "The U.S. stock market started higher after the PPI release came in below market expectations, but intraday losses deepened as rumors spread that President Trump was about to dismiss Fed Chair Powell. The market rebounded as President Trump denied the reports, and all three major indexes ended the session higher."

The previous day, the KOSPI closed at 3,186.38, down 0.90% from the previous session. This is interpreted as profit-taking from existing leading stocks amid perceptions of short-term overheating.

The KOSPI is also expected to open lower today. The burden of U.S. Treasury yields and the sharp decline in ASML are expected to have an impact. ASML reported second-quarter earnings that exceeded market expectations. However, the company stated that it could not guarantee growth next year due to uncertainties, resulting in its share price falling by 8.33%.

Researcher Lee stated, "The domestic stock market is expected to open slightly lower, reflecting weakened risk appetite due to the burden of U.S. Treasury yield levels, the shock from ASML's sharp decline amid downward revisions of earnings forecasts due to tariffs, and other related factors."