Fed's dovish stance to help stabilize financial market
- 5 years ago
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After the U.S. Federal Reserve took a dovish stance on its monetary policy, South Korea's benchmark index started strong today.
Hong Yoo sheds light on how the Fed holding its target interest rate steady influenced the local financial market.
Korea's benchmark KOSPI started Thursday's trading with an increase of 0.76 percent from the previous day, at 2-thousand-2-hundred-22-point-88. The main bourse continued to stand high through the afternoon until it edged down and closed at 2-thousand-2-hundred-4-point-85.
Investors and officials attributed the stable performance to the decision of the Federal Open Market Committee on Wednesday to keep key rates steady.
The governor of the Bank of Korea, Lee Ju-yeol, said that changes rooting from the Fed's rate meetings affect the nation's future monetary policy, as well as that of many other foreign markets.
He also pointed out that the Fed had said it would "best support the economy by being patient and evaluating the outlook before making any future adjustment to policy."
After the Fed froze its target interest rate at 2-point-2-5 to 2-and-a-half percent to evaluate the outlook before making any future adjustment to policy, Wall Street saw an increase of the Dow Jones Industrial Average, the S&P 500 and the Nasdaq overnight.
Stock analysists explained that the market's preference for risky assets increased as the Fed deleted the phrase "point-in-time rate increase" in the FOMC statement and after Jerome Powell also hinted at an early termination of the asset reduction.
Hong Yoo, Arirang News.
After the U.S. Federal Reserve took a dovish stance on its monetary policy, South Korea's benchmark index started strong today.
Hong Yoo sheds light on how the Fed holding its target interest rate steady influenced the local financial market.
Korea's benchmark KOSPI started Thursday's trading with an increase of 0.76 percent from the previous day, at 2-thousand-2-hundred-22-point-88. The main bourse continued to stand high through the afternoon until it edged down and closed at 2-thousand-2-hundred-4-point-85.
Investors and officials attributed the stable performance to the decision of the Federal Open Market Committee on Wednesday to keep key rates steady.
The governor of the Bank of Korea, Lee Ju-yeol, said that changes rooting from the Fed's rate meetings affect the nation's future monetary policy, as well as that of many other foreign markets.
He also pointed out that the Fed had said it would "best support the economy by being patient and evaluating the outlook before making any future adjustment to policy."
After the Fed froze its target interest rate at 2-point-2-5 to 2-and-a-half percent to evaluate the outlook before making any future adjustment to policy, Wall Street saw an increase of the Dow Jones Industrial Average, the S&P 500 and the Nasdaq overnight.
Stock analysists explained that the market's preference for risky assets increased as the Fed deleted the phrase "point-in-time rate increase" in the FOMC statement and after Jerome Powell also hinted at an early termination of the asset reduction.
Hong Yoo, Arirang News.