Why is the KOSPI index fluctuating ahead of the U.S. interest rate decision?

Investors are adopting a wait-and-see approach, pausing significant investment until the outcome of the U.S. Federal Reserve's interest rate decision is known.

What is the current trend of the KOSDAQ index?

The KOSDAQ index is currently showing a strong upward trend, with its early session gains expanding.

Which investor types are buying and selling on the KOSPI?

Foreign and institutional investors are net sellers on the KOSPI, while individual investors are net buyers.

Home / Business and Economy / Markets Tread Water: US Rate Decision Looms

Markets Tread Water: US Rate Decision Looms

9 Dec

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Summary

KOSPI index fluctuates near break-even point awaiting US rate decision.
Foreign and institutional investors are net sellers on the KOSPI.
KOSDAQ index shows a strong upward trend with foreign buying.

Markets Tread Water: US Rate Decision Looms

The KOSPI index began the session with positive momentum but has since turned downward, fluctuating near the break-even point. This cautious trading environment stems from investor anticipation of the U.S. Federal Reserve's upcoming interest rate decision. Both foreign and institutional investors have shown a tendency to sell, contributing to the index's lack of clear direction.

Globally, U.S. stock markets closed higher last Friday, influenced by favorable inflation data and strong tech stock performance. However, gains were limited as markets await the Federal Open Market Committee (FOMC) announcement. This sentiment has translated to the domestic market, with individual investors being the primary net buyers.

Conversely, the KOSDAQ index is exhibiting a strong upward trend, with its gains expanding in early trading. Large-cap stocks are leading this surge, with notable increases in companies like Alteogen, EcoPro BM, and EcoPro. Foreign investors are actively buying in the KOSDAQ market.