[오늘 尹탄핵 표결] Financial markets fluctuate amid impeachment
Han dong-hoon also reacted to the mention of “suspension from his duties”… KOSDAQ lowest intraday price in 4 years and 7 months
The exchange rate once soared to below 1,430 won… Concerns about “stock market recession and prolonged high exchange rate”
Choi Sang-mok says, “there is too much concern,” trying hard to put out the fire.
As the impeachment situation gained momentum, the financial market faltered again on the 6th. As Han dong-hoon, CEO of the People Power Party, mentioned the need to suspend President yoon Seok-yeol, and some raised the possibility of a ‘second martial law’, KOSPI plummeted below the 2,400 mark at one point. The won-dollar exchange rate also soared to below 1,430 won. Experts are concerned that if the ‘zero clock’ situation is prolonged due to impeachment, etc., the stock market may fall into a long-term recession and the high exchange rate in the 1,400 won range may become entrenched. Fitch, one of the world’s three largest credit rating agencies, also diagnosed that downward pressure on credit ratings could increase if the situation continues for a long time.
● The market fluctuates again amid the hectic impeachment situation.
On the 6th, KOSPI started rising for the first time in a long time at 2,451.60, up 9.75 points (0.4%) from the previous day. Though, the stock market, which seemed to be on the rise, was once again hindered by political risks. At around 9:30 a.m., the stock market reacted immediately after Representative Han said at an emergency Supreme Council meeting, “president Yoon needs to be immediately suspended from carrying out his duties.” at around 10:30 a.m., the Military Human Rights Center held an emergency press conference and announced, “We have detected suspicions of a second martial law,” and the decline grew further. KOSPI slipped to 2,397.73 during morning trading.
This is the third time this year that the KOSPI has fallen below the 2,400 level since August 5, when ‘Black Monday’ occurred, and on the 15th of last month, when US Federal Reserve Chairman Jerome Powell suggested adjusting the pace of interest rate cuts. KOSDAQ also fell 3.96% this morning compared to the previous day, reaching 644.39, showing the lowest intraday price in 4 years and 7 months since may 2020.
Reducing the afternoon decline somewhat, KOSPI closed at 2,428.16 (-0.56%) and KOSDAQ closed at 661.33 (-1.43%).
Confusion continued in the foreign exchange market. The won-dollar exchange rate, which started trading at 1,416.0 won, jumped to 1,429.2 won (the value of the won fell) at one point in the morning. It has been two years and one month since November 2022 that it rose to the 1,420 won level in weekly trading.The exchange rate,which was close to reaching the 1,430 won range,then fell somewhat and stood at 1,419.20
there is growing concern in the market that if the political conflict surrounding President Yoon’s impeachment prolongs, investment sentiment may further decline. Jiyoung Han, a researcher at Kiwoom Securities, said, “If the impeachment situation is prolonged, not only political uncertainty but also policy vacuums may occur, which may cause volatility in stock prices and foreign supply and demand in the short term.” lee Woong-chan, a researcher at iM Securities, also said, “Whether the impeachment bill is passed or rejected, it is important that uncertainty is resolved.”
Credit rating agency Fitch also warned in a report on the 6th, “If the political crisis is prolonged or the efficiency of policy decisions, economic performance, or finances are weakened due to continued political division, the risk of downside (Korea’s national credit rating) may increase.” .
● Deputy Prime Minister Choi Sang-mok “Efforts will be made to ensure that external credibility is not affected”
The economic and financial authorities continued their busy efforts on this day to calm the aftermath of martial law. deputy Prime Minister and Minister of Strategy and Finance Choi Sang-mok attended a meeting with foreign Chambers of Commerce and Industry with Minister of Trade, Industry and Energy Ahn Deok-geun and emphasized, “Martial law measures have all been lifted and all systems are operating as before.”
We are also actively engaging in communication with foreign media. in an interview with Bloomberg held on the 5th, Deputy Prime Minister Choi responded to a question about the possibility of an economic recession by saying, “It is too much of a concern,” adding, “Because the recent martial law measures were quickly lifted in accordance with the Constitution and law, I think the impact on the market was very limited. “He explained.
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