[Good Morning Stock Market] Global Stock Markets Rise Amid Economic Normalization... KOSPI Expectations UP

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[Asia Economy Reporter Park Jihwan] The U.S. New York stock market closed higher for the second consecutive day amid growing expectations for economic normalization. This is because the easing of lockdown measures implemented to curb the spread of the novel coronavirus infection (COVID-19) in the U.S. has increased hopes for economic normalization. Attention is focused on whether this sentiment will continue in the domestic stock market as well.

On the 6th, global stock markets showed an upward trend due to the economic lockdown measures taken by various countries in response to the spread of COVID-19. The Dow Jones Industrial Average on the New York Stock Exchange (NYSE) closed at 23,883.09, up 133.33 points (0.56%) from the previous trading day. The Standard & Poor's (S&P) 500 index rose 25.70 points (0.90%) to 2,868.44, and the tech-heavy Nasdaq index closed at 8,809.12, up 98.41 points (1.13%).

European stock markets also rose. The FTSE 100 index of the London Stock Exchange in the UK closed at 5,849.42, up 1.7% from the previous day's closing price, and Germany's Frankfurt Stock Exchange DAX 30 index ended the day at 10,729.46, up 2.5%.

◆ Seo Sangyoung, Kiwoom Securities Researcher = Following the previous day, the U.S. stock market was led higher by companies related to the expansion of online-based sales. Demand for technically sophisticated products is increasing significantly. This indicates growing demand for the deployment of 5G technology and large-scale application of IoT (Internet of Things), raising expectations for related companies in the Korean stock market as well.

However, even if the U.S. economy reopens, the continued employment insecurity remains a burden, making it unlikely that U.S. consumption will improve significantly in the near future. This is because the pace of economic recovery may be delayed compared to market expectations. The Korean stock market is expected to start higher on the day, but rather than expanding gains, it is likely to give up some of the gains due to the possibility of selling pressure.

◆ Jeon Jonggyu, Samsung Securities Researcher = The future direction of the global stock market can be glimpsed through the Chinese stock market. The Chinese stock market is showing a role as a leading market for COVID-19. After the containment of COVID-19 within China in February, the Shanghai Stock Exchange showed a stable trend compared to developed countries' stock markets for three months but is now entering a phase of increased volatility. The Chinese stock market in May is expected to show a pattern of weakness followed by strength. The containment of COVID-19, stimulus policies, and normalization of economic activities are positive factors, but trade dispute tensions with the U.S. could be a burden on the stock market.

This content was produced with the assistance of AI translation services.