Dealers are working at Hana Bank’s dealing room in Jung-gu, Seoul on the 26th, which ended at 3012.95, down 2.80% (86.74p) from the previous day.ⒸProvided by: Newsis
The global financial markets fluctuated as interest rates on US Treasury bonds surged. The global stock market crashed and the foreign exchange market shook. The KOSPI index once fell below the 3000 line. Foreigners and institutions sold 3 trillion won, and as individual investors received the sale, the closing price remained at the 3000 mark.
On the 25th (local time), the US 10-year Treasury bond yield (yield) recorded 1.513% in the New York bond market. This is a 0.125% increase from the previous day. The interest rate, which was less than 1% last year, rose 0.5% in less than two months.
US 10-year Treasury bonds have been adjusted by the Federal Reserve System (Fed) to a certain level through quantitative easing. If the interest rate rises, the burden of funds intensifies, so if the interest rate rises above a certain rate, the level is maintained through purchase. The recent sharp rise in interest rates can be seen as the FED tolerated a certain rate hike in the course of a natural economic recovery when the Corona 19 pendemic subsides with a vaccine.
Dallas Fed Governor Robert Kaplan said on the 22nd, “If the US continues to recover, a rise in government bond yields is an encouraging signal.” “It is not surprising that government bond yields rise as the growth outlook improves.”
Stock prices around the world, leaned on liquidity released by low interest rates, were staggering. The NASDAQ Composite Index (US technology stocks) fell 3.52%, and the S&P 500 Index (large stocks) fell 2.45%. Shares of major companies such as Tesla (-8.06%), Apple (-3.48%), Microsoft (-2.37%), and Amazon (-3.24%) plummeted.
The KOSPI closed the deal at 3012.95, down 2.8% from the previous day. During the week, it fell 3.59% to 2988.28. At the last minute, individual buying continued, keeping the 3,000 line. Foreigners and institutions net sold 3,800 billion won, and individuals net bought a total of 3.7 trillion won.
Japan’s Nikkei 225 Index plunged 3.99% and China’s Shanghai Composite Index fell 2.12%.
Reporter Hong Min-cheol
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