2024-05-17 08:45:52
The won-dollar trade charge plummeted by greater than 20 gained as expectations of a U.S. rate of interest reduce revived on account of a slowdown within the progress of the U.S. Shopper Value Index (CPI). Because the U.S. greenback weakened and danger desire strengthened, all three main U.S. New York inventory indexes broke document highs.
On the sixteenth, the won-dollar trade charge within the Seoul international trade market closed at 1345.0 gained, down 24.1 gained from the earlier buying and selling day. Based mostly on the closing value, it’s the lowest since March 26 (1339.5 gained). The worth of main Asian currencies towards the greenback additionally rose. The greenback index, which represents the worth of the greenback towards six main currencies, fell to 104.31 as of 5 p.m. on at the present time. It has been a couple of month since early final month that it dropped to 104 items.
When the U.S. CPI in April was slower than market expectations, the inventory market confirmed energy as expectations for an rate of interest reduce in September revived. On the fifteenth (native time) within the New York inventory market, the Customary & Poor’s (S&P) 500 index rose 1.2%, exceeding 5,300 for the primary time. The Nasdaq index, centered on know-how shares, additionally rose 1.4%, and the Dow Jones Industrial Common additionally rose 0.88%. This 12 months, the S&P 500 index recorded an all-time excessive for the twenty third time, the Dow index for the 18th time, and the Nasdaq index for the eighth time.
It’s understood that the market welcomed this as inflation indicators, which had been scorching from January to March of this 12 months, confirmed indicators of slowing down, which is a situation for the rate of interest reduce proposed by the U.S. Federal Reserve (Fed). The Federal Reserve has beforehand recommended slowing inflation or weakening the job market as situations for reducing rates of interest. The April CPI introduced by the U.S. Division of Labor on at the present time rose 0.3% in comparison with the earlier month, barely decrease than the market forecast (0.4%). In comparison with the earlier 12 months, it rose 3.4%, assembly market expectations, and the core CPI enhance charge, excluding extremely risky vitality and foodstuffs, was 3.6% in comparison with the earlier 12 months, the bottom in three years since April 2021.
US retail gross sales introduced on at the present time confirmed no change in comparison with the earlier month, falling considerably beneath market expectations (0.4%). It’s interpreted that customers are closing their wallets as excessive inflation continues. The beforehand introduced new employment in April was additionally 175,000, considerably decrease than the forecast (240,000), elevating expectations of a slowdown in inflation.
Rate of interest futures traders are betting closely on a charge reduce in September, based on the Chicago Mercantile Trade’s FedWatch. The probability of the Federal Reserve reducing rates of interest in September was discovered to be 75% instantly after the CPI announcement, up 10 proportion factors from the day prior to this (65%). Accordingly, the worth of the greenback and rates of interest on U.S. Treasury bonds rose concurrently, elevating market expectations.
Excellent news additionally unfold to the home inventory market. KOSPI closed buying and selling at 2,753.00, up 0.83% on the sixteenth. KOSPI, which began at 2,770.27, up 1.46% from the day prior to this, jumped to 2,773.46 through the day after which gave again a number of the beneficial properties. Foreigners and establishments led the bull market with internet purchases of 426.4 billion gained and 593.9 billion gained, respectively. The KOSDAQ index additionally closed at 870.37, up 0.95%.
Reporter Shin A-hyung [email protected]
New York = Correspondent Kim Hyun-soo [email protected]
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2024-05-17 08:45:52