[Morning Market Briefing] Today's Market at a Glance

[Morning Market Briefing] Today's Market at a Glance

3-Line Summary

 

  • U.S. stocks: Taking a breather as financials and semiconductors correct

 

  • Korean stocks: Index keeps hitting record highs on institutional buying despite foreign selling

 

  • Key variables: Geopolitical risk, earnings season getting into full swing, whether the exchange rate stabilizes

 

 

🇺🇸 U.S. Stock Market Trends

 

Geopolitical risk in focus

Mention of a possible U.S. military intervention in Iran → investor sentiment weakens intraday

Stronger preference for safe-haven assets weighs on the stock market

 

Financials weak

Bank stock volatility widens as earnings season kicks off

JPMorgan: disappointing IB revenue → falls about 4%

Card stocks such as Visa plunge on remarks about a 10% cap on credit card interest rates

BoA and Citigroup earnings solid, Wells Fargo somewhat weak

 

Semiconductors and big tech correct

Reports that Chinese customs authorities have banned clearance of Nvidia H200 chips

Nasdaq falls 1%, led by semiconductors

 

 

 

💱 FICC Market Trends

 

Bonds

U.S. 10-year Treasury yield 4.13% (-4.7bp)

Rising geopolitical tension → increased demand for safe-haven assets

 

FX

Dollar index 99.07 (-0.06%)

Impact of verbal intervention by Japanese FX authorities + the U.S. Treasury Secretary's remarks on the won

Dollar/won closes at 1,464 won in overnight trading

 

Commodities

Oil at 62.02 dollars/barrel (+1.42%)

Rose on the Iran issue, but further downward pressure as Trump signals no actual military intervention

 

 

🌏 China and Europe Stock Market Trends

 

China

Profit-taking after the recent surge

Correction led by bank stocks

December exports +6.6% YoY, beating the forecast (3.0%) → fundamentals solid

 

Europe

Mixed ahead of scheduled Greenland-related negotiations in the U.S.

News of the EU's FTA with four South American countries (Mercosur) is a positive factor over the mid to long term

 

 

🇰🇷 Korean Stock Market Trends

 

Index movement

KOSPI +0.7%, KOSDAQ -0.7%

KOSPI hits record highs for 9 consecutive trading days, settles at 4,700p

 

Flows

Foreign investors net sellers for 5 consecutive trading days

Institutional rebound buying defends the index and leads the gains

 

Sectors

Semiconductors strong

Samsung Electronics +2.0%

SK hynix +0.5%

Korean large-cap chipmakers diverge despite the U.S. market correction

 

Interpretation

Short-term volatility exists due to global variables

However, institutional flows and earnings expectations centered on large caps support the index level

Entering record-high territory → time to prove it with “earnings” rather than “expectations”

 

 

🗓 Key Events This Week (Korea Time)

 

15th (Thu): Bank of Korea Monetary Policy Board meeting, U.S. New York State manufacturing index
Earnings – Goldman Sachs, BlackRock, Morgan Stanley

 

16th (Fri): U.S. futures and options expiration