Time now for an in-depth look at the market news this afternoon.
And for that, I'm joined on the line by Mr. Daniel Yoo, Global Strategist at Yuanta Securities.
Mr. Yoo, good afternoon.
Hope you had a good holiday.
Thank you for making time today.
The Federal Reserve this week decided to raise interest rates by half a percentage point.
That makes it the biggest single increase since the year 2000.
We've been in a very low interest rate environment since the financial crisis, but you could
even say for the past thirty years.
What's the thinking at the Fed,... and what in particular are you watching here?
We saw
stocks
in
the U.S. with a huge gain on Wednesday, and
then on Thursday a massive sell-off.
The Nasdaq down 5 percent.
All of last year's gains in those tech shares now wiped out, back to where it was in late
2020.
Not just the rate hike, but also worker productivity down massively... with rising wages, meaning
a surge in labor costs.
Also bond yields soaring.
Help us make some sense of all this volatility in the global markets.
Today, Korean stocks with a
big decline as well.
Only a very few companies with a gain today, and the exchange rate...
now above 12-70 to the dollar, a level we haven't seen until recently...
since the aftermath of the financial crisis.
What's the story in the domestic market?