Weakening Stock Market Sentiment... Focus on 'Yen Carry' Unwinding [3-Minute Brief]

Published 09 Aug.2024 08:00(KST)

Updated 19 Jan.2025 11:08(KST)

[At a Glance]
① Financial Supervisory Service Chief: "Regrettable that controlling shareholders prioritize their own interests"
② KDI Lowers Growth Forecast: "Domestic Demand Slumps Due to Prolonged High Interest Rates"
③ Buffett Holds More US Short-Term Treasury Securities Than the Fed

MARKET INDEX : Year to date

Weakening Stock Market Sentiment... Focus on 'Yen Carry' Unwinding [3-Minute Brief]

- US New York stock market's three major indices surged simultaneously
- Unemployment claims dropped to the lowest in a year
- Investor sentiment recovered as concerns over employment cooling eased

Top3 NEWS

■ Financial Supervisory Service Chief’s Stern Criticism: "Regrettable Companies Prioritizing Only Controlling Shareholders’ Interests"

- Controversy over Doosan Group’s governance restructuring
- Criticism of "actions going against value-up"
- Need for discussion on ‘duty of loyalty of directors’

■ KDI Lowers Growth Forecast for This Year: "Domestic Demand Slumps Due to Prolonged High Interest Rates"

- Slightly lowered from May forecast (2.6%)
- Domestic demand slump continues unlike exports
- "Private consumption and facility investment affected by high interest rates"

■ "Buy in Crisis"... Buffett Holds More US Short-term Treasury Bonds Than Fed

- Berkshire Hathaway recently sold stocks
- Increased cash-like assets including US short-term Treasury bonds
- Some worry this might be a ‘crisis signal’

Graphic News: US Weekly Trade Cancellations Ripple Widely

- "Problems occurred due to capacity shortage amid surge in trading volume"
- 90,000 domestic accounts and 630 billion KRW scale of trade cancellations
- "New system to operate by the end of this month... communication on resumption timing"

the Chart: Where is the Market Bottom... "Focus on Yen Carry Trade Liquidation"

- Possibility of US base rate cut and yen appreciation
- "Supply-demand instability due to yen carry trade liquidation needs to be resolved"
- Supply-demand volatility may continue to cause market anxiety

Term in the News: The Focus is ‘Money’… ‘Attention Economy’

- Focus on the scarcity of human attention
- Capitalization of attention through algorithms
- Social and ethical issues such as filter bubbles also raised

Today’s Key Schedule

○Domestic

- 9th: KOSPI Jeonjin Construction Robot subscription, public offering price 15,700 KRW

- 9th: KOSDAQ Daishin Balances SE18 SPAC subscription, expected public offering price 2,000 KRW

- 9th: KOSDAQ K3I subscription, public offering price 15,500 KRW

- 9th: KOSDAQ TDS Pharm subscription, expected public offering price 9,500~10,700 KRW

○Overseas

- 01:00 US Atlanta Fed Q3 GDPNow

- 05:30 Fed Balance Sheet

- 10:30 China July Consumer Price Index

- 15:00 Germany July Consumer Price Index

- 21:00 Brazil July Consumer Price Index

- 21:30 Canada July Unemployment Rate

◇Lunch & Commute Weather

○ Lowest temperature 26℃(0℃) ｜Highest temperature: 34℃(▲1℃)
○ Precipitation probability Morning 0%｜Afternoon 0%
○ Fine dust Morning Good｜Afternoon Good

3 minutes is OK, essential time-efficient economic news. Published daily at 8 AM.