Seoul stocks likely to face volatility ahead of FOMC meeting next week
Jun 13, 2021
Seoul (South Korea), June 13: South Korean stocks may face volatility next week ahead of the Federal Open Market Committee (FOMC) meeting, as investors seek more clues about when the world's largest economy would start rolling back its asset-buying program to ease rising inflation.
The benchmark Korea Composite Stock Price Index (KOSPI) closed at 3,249.32 points Friday, up 0.28 percent from a week ago.
The gain came amid optimism about a quick economic rebound despite accelerating inflationary pressure at home and abroad.
This week, foreigners scooped up 175 billion won (US$157 million) worth of local stocks at the main bourse, disregarding the consensus-beating U.S. price gauge as a temporary influence. The U.S. consumer price index (CPI) for May expanded 5 percent, marking the highest on-year jump since 2008.
Analysts said volatility may increase next week, with more price data and the FOMC meeting in store. The Fed's monetary policy meeting results will be published Thursday (Korean time).
"The market is focusing on the results of the FOMC meeting," NH Investment & Securities analyst Kim Young-hwan said.
In the coming week, the latest U.S. retail sales and producer price index will be released Tuesday (Korea time).
China's May retail sales will be published Wednesday, and the European consumer price data will be released Thursday (Korea time).
Source: Xinhua
