A screen displays the Kospi index and the exchange rate between the South Korean won and the U.S. dollar at Hana Bank's trading hall in Seoul, South Korea, Monday, Dec. 16, 2024.
SeongJoon Cho | Bloomberg | Getty Images
This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors the latest news wherever they are. Like what you see? You can subscribe Here.
What you need to know today
All eyes are on the US jobs report
The US nonfarm payrolls report for December will be published this Friday. Economists expect this to be visible an increase in the number of jobs by 155,000compared to 227 thousand in November, and the unemployment rate will remain unchanged at 4.2%. Analysts from Goldman Sachs AND Citigrouphowever, he believes that both numbers will be worse than the consensus.
US stock markets are dark, European markets are closing on gains
US stock markets were closed on Thursday due to former US President Jimmy Carter he died at the end of December at the age of 100. regional Europe Stoxx 600 the index increased by 0.42% after starting the day in the red. Denmark's Moller-Maersk fell 5.8% on a broader sell-off in shipping shares after preliminary employment contract stuck by American dockers.
Fed governor thinks December cut should be 'last step'
US Federal Reserve Governor Michelle Bowman stated that the Fed December interest rate cut should be his “final step in the policy recalibration phase.” This suggests that Bowman, a voting member of the Federal Open Market Committee, may oppose further cuts this year. Other Fed officials speaking this week were more optimistic about rate cuts.
Ubisoft explores 'strategic and capitalist options'
French video game publisher Ubisoft said Thursday that he had been named “lead adviser.” review options “extract the best value for stakeholders.” In October, it was reported that Ubisoft founders, the Guillemot family and Tencent were considering a launch company takeover. Ubisoft shares are at a 10-year low faces questions about its future.
(PRO) The best place for a job offer report
The US economy is in a delicate position between growth and inflation. The jobs report released Friday shows how difficult it is to strike a balance. Too hot and Treasury yields may rise; too cold and fears of an economic slowdown could hold back stocks, Goldman Sachs said. But S&P500 may meet if the report is received by just the right range.
The most important thing
South Korea cannot rest. Last month, martial law was introduced in the country, its incumbent and deputy president were impeached, he is in his second position as president (so far), and a tragic plane crash occurred.
How have these events affected the Korean market?
According to the Kospi index: not much. The index, which tracks all common shares listed on the Korea Stock Exchange, is now higher than where it was on December 3, when recalled President Yoon Suk Yeol declared martial law.
Its resilience can be attributed to Korea's political history and the quick – and perhaps unexpected – actions of the Bank of Korea.
Yoon and Han Duck-soo are just two more presidential figures in Korean history to be impeached. Previously, Roh Moo-hyun was impeached in 2004 (though the court overturned it), while Park Geun-hye was impeached in 2016 and removed from office the following year.
“Presidential impeachments are not unprecedented in Korea, and at least the country's stocks ultimately performed quite well during the last impeachment in 2016/2017,” Thomas Mathews, head of Asia-Pacific markets at Capital Economics, he said.
The uncertainty caused by Korea's last two impeachments “dissipated within three to six months,” Soohyung Lee, a member of the Bank of Korea's Monetary Policy Council, he told CNBC January 2, so “it is possible that the political turmoil will not leave such a significant impact on the country's economy.”
The Bank of Korea's actions also appeared to calm markets.
The BOK announced that on the day martial law was lifted in Yoon emergency measures to calm markets and prevent variability. Likewise, a a surprise cut in interest rates by 25 basis points by the BOK at its November meeting, passed before Yoon declared martial law in December, could have softened the blow.
Domestic factors may not be the biggest threat to the Korean economy and markets in the coming year. The risk of deterioration tariffs imposed by U.S. President-elect Donald Trump are more worrisome, especially for an export-oriented country like Korea, Lee said.
Korea's recent troubles show that when one branch of government falls, other institutions can still support the country and its economy, but it becomes much more difficult to deal with the governments of others.
— CNBC's Lim Hui Jie and Lee Ying Shan contributed to this report.