The stock market, which was the first ever to climb the KOSPI 3000 high in history last month, marched at the highest price every day, and showed a roller coaster market this month.
The KOSPI index fell by about 3% from the previous week, recording 3012.95 in the last week of February (22-26) due to concerns over a rate hike amid rising US Treasury yields. On the 24th, it fell below the 3000 line for the first time.
Amid growing volatility in the stock market, the height of the March stock market will depend on the US and China.
First, the rise in US Treasury yields following last month remains a burden. The 10-year U.S. Treasury bond yield has been on the rise this year, exceeding the 1.5% psychological resistance line on the 25th. Considering the fact that it fell to the 0.5% level in August last year, it has tripled.
Fed Chair Jerome Powell has promised low interest rates several times, but market concerns remain. They are wary of inflation and rising interest rates due to the effects of the US administration’s discussion of additional stimulus measures and the corona 19 vaccination.
Also, in the first week of March, China’s largest political event will be held. The two meetings are annual meetings of the National People’s Congress (Non-in University), which is the national decision-making body of China, and the China People’s Political Conference (Political Association), an advisory body. China will enter the two sessions for about 10 days starting with the political association on March 4 and the opening of the NPC on March 5.
The concern of both meetings this year is whether a new growth strategy will emerge along with the message of President Xi Jinping’s third appointment. Interest is focused on what content will be included in the 14th Five-Year Plan and the long-term development strategy in 2035 to solidify the foundation for long-term governance.
In addition, Prime Minister Li Keqiang will announce the growth rate target through a government work (work plan) report on the opening day of the NPC on the opening day of the NPC, so it is noteworthy how much economic growth rate will be announced.
Earlier, Reuters predicted that China will show a strong recovery from the recession caused by Corona 19 last year, and this year’s growth rate will be able to exceed 8%.
Eunah Jo, Reporter of Money Today Broadcasting MTN
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