Fed blackout kicks in… June FOMC caution grows [Weekly Stock Market Outlook]

Securities firms present a forecast range for the KOSPI index of 2580 to 2700,

[Seoul=Newsis] Reporter Hwang Joon-sun = The KOSPI closed at 2636.52, up 1.08 points (0.04%) from the previous trading day’s 2635.44, at the end of the day on the 31st afternoon at the Hana Bank dealing room in Jung-gu, Seoul. The KOSDAQ index closed at 839.98, up 7.99 points (0.96%) from the previous trading day’s 831.99. The won-dollar exchange rate closed at 1384.5 won, up 5.1 won from the previous trading day’s 1379.4 won. 2024.05.31. [email protected], ‘[Seoul=Newsis] Reporter Kim Kyung-taek = This week, with the Federal Reserve entering a blackout period, the caution surrounding the June FOMC (Federal Open Market Committee) is expected to increase, leading to a cautious week in the Korean stock market. ‘,
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, ‘According to the Korea Exchange on the 2nd, the KOSPI closed at 2736.52, down 51.08 points (1.90%) from the previous week’s 2687.60.’,
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, ‘At the beginning of the week, with the rebound of Samsung Electronics, the index regained the 2700 level, but as the downward trend continued during the week, it was pushed back to the 2600 level and retreated to the 2630 level under pressure from foreign selling.’,
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, ‘In the stock market last week, foreigners were net sellers of 3.2422 trillion won, while individuals and institutions were net buyers of 2.4164 trillion won and 804.1 billion won, respectively.’,
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, ‘This week, it is expected that there will be a cautious sentiment in the stock market as Federal Reserve officials entered the blackout period following Federal Reserve Chairman Rafael Bostic’s speech. Securities firms have presented a weekly forecast range for the KOSPI of 2580 to 2700.’,
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, ‘NH Investment & Securities analyst Kim Young-hwan said, “Optimistic earnings forecasts for U.S. big-tech companies and expectations of strong Korean exports are acting as factors for the stock market’s rise, while uncertainties in the U.S. Federal Reserve’s monetary policy and inconsistent U.S. economic indicators are expected to be factors for a decline,” adding, “After confirming the employment figures on the 6th, following the FOMC on the 12th, it is expected that investors’ opinions will converge.”‘,
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, ‘Analyst Kim stated, “Recent concerns in the stock market are not so much about the possibility of a recession or further interest rate hikes, but rather seem to be looking for a pretext for a correction following the rise in share prices during the first quarter. It is considered more likely that after digesting profit-taking selling, there is a high possibility of a resurgence.”‘,
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, ‘IBK Investment & Securities analyst Byun Jun-ho said, “The caution over inflation, interest rates, and the Federal Reserve’s stance is likely to continue until the FOMC on the 12th,” adding, “There could be ongoing concerns about how the recent shift in the Federal Reserve’s hawkish stance will impact comments from Fed Chair Jerome Powell during the actual FOMC meeting and the dot plot. There is a high likelihood of an upward revision in inflation forecasts and the dot plot.”‘,
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, ‘However, Analyst Byun added, “After the FOMC, there is a possibility of a summer rally due to low-priced buying influx following expectations for Micron’s earnings in mid-June and beyond.”‘,
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, ‘◇Key Economic Indicators Release and Event Schedule’,
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, ‘▲3rd = U.S. April construction spending, May ISM Manufacturing Index, China May Caixin Manufacturing PMI, May Caixin Non-Manufacturing PMI, Japan 1Q Capital Investment’,
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, ‘▲4th = Korea May Consumer Price Index, U.S. April Manufacturing Orders’,
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, ‘▲5th = U.S. May ISM Non-Manufacturing Index, May ADP Nonfarm Employment Change, Japan April Worker Cash Earnings’,
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, ‘▲6th = European Central Bank Monetary Policy Decision Meeting’,
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, ‘▲7th = U.S. May Nonfarm Payrolls, May Unemployment Rate, May Average Hourly Earnings, China May Exports, May Imports’,
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