The Fearless Girl statue outside the New York Stock Exchange on December 18, 2020.
Noam Garay | Getty Images Entertainment | Getty Images
This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
South Korea declares and lifts martial law
South Korean President Yoon Seok-yeol announced early Wednesday morning Emergency martial law will be lifted After the National Assembly Vote to overturn Yin’s decree Posted late Tuesday night. Yoon has clashed with opposition parties in recent weeks over the 2025 budget. A coalition of lawmakers from the opposition parties is It is said A bill to impeach Yin is scheduled to be introduced on Wednesday.
Korean market turmoil
Korean market Open lower on Wednesday As investors digest political turmoil. South Korea’s Kospi index fell about 1.6% heavyweight stocks Samsung Electronics Co., Hyundai Motor Co. and Korea Gas Corp. were among the companies that suffered setbacks. won Rebound from early sharp losses – fell to two-year lows against the greenback – but ended lower against the greenback.
Emergency measures by the Bank of Korea
The morning after Yoon’s shocking move, the Bank of Korea said it would Increase short-term liquidity and provide special loans when necessary to stabilize the country’s financial and foreign exchange markets. However, Citi analysts wrote in a note that the impact on markets could be “short-lived” if there is a “positive policy response.”
mixed market
The US market is tuesday mix. this S&P 500 Index It’s flat, Dow Jones Industrial Average dropped, but Nasdaq Index Rose. There are also transactions in the Asia-Pacific market wednesday mix. Australian S&P/ASX 200 Index As the country’s statistics agency reported GDP growth of 0.38% 0.3% slower than expected in the three months to September.
(PRO) Opportunities in French political chaos
Beyond South Korea, France is facing its own political chaos, with lawmakers proposing a vote of no confidence against the government of Prime Minister Michel Barnier. Political uncertainty is having an impact on financial markets, generate trading opportunities.
bottom line
December may have sparked a Mariah Carey thaw, but stocks were tepid at the start of the month.
this S&P 500 Index is essentially flat, and Dow Jones Industrial Average down 0.17%. this Nasdaq IndexHowever, due to apple rose 1.3%, hitting a new 52-week high.
It is unlikely that stocks will remain in the permafrost this month.
December is the month ever Third best month of the yearaccording to the Stock Trader’s Almanac.
The stock market may fluctuate slightly in early December, Write According to CNBC’s Bob Pisani, a tax-loss sale is a phenomenon in which investors sell loss-making assets to reduce the tax burden on other assets that receive capital gains. But as the end of the year approaches, stocks tend to regain momentum.
“Historically, these strong returns tend to be back-end loaded,” said George Smith, portfolio strategist at LPL Financial.
Additionally, in presidential election years, December typically moves up a notch to become second best month for stocks.
As Ken Mahoney, CEO of Mahoney Asset Management, noted, “The market has never fallen in December when the market has risen 10% or more following the election of a newly elected president.”
Additionally, investors may be awaiting the U.S. November employment report due on Friday before making any major moves. The data will be the Fed’s last look at the labor market before its rate-setting meeting on Dec. 17-18.
The market currently predicts that the probability that the Federal Reserve will cut interest rates by 25 basis points at this meeting is 73.8%, which is more optimistic than last week’s 59.4%. CME FedWatch Tool.
If the Fed does cut interest rates, the move might also remove lingering frostbite from the stock market, just in time for them to hear the sleigh bells.
—CNBC’s Bob Pisani, Sarah Min, Hakyung Kim, Sean Conlon, Lisa Kailai Han and Alex Harring contributed to this report.
