A Surprise Declaration of Martial Law in South Korea Lifted, Global Markets React
A surprise declaration of martial law in South Korea that sent the won plummeting was lifted on Tuesday, removing one source of geopolitical jitters for world markets to contend with. US stocks were muted and range-bound, with the blue-chip Dow Jones Industrial Average down the most.
The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) showed job openings on the rise and layoffs on the wane, supporting the notion that the labor market continues its gradual cool-down. The Federal Reserve is set to release its November employment report on Friday, which will be parsed for clues regarding its policy decisions in December and beyond.
Despite the unexpected turn of events in South Korea, global stocks rose, with the MSCI index gaining 0.36%. European shares hit a one-month high, despite the French government being on the verge of collapse following a vote of no confidence from far-right and left parties.
The dollar lost ground against a basket of currencies, as financial markets cemented expectations that the Federal Reserve will make another interest rate cut at its December policy meeting. The euro rose 0.14% to $1.0512, while the Japanese yen rose 0.15% to 149.38 against the dollar.
Crisis in Ukraine and the Middle East, as well as the ongoing concerns about OPEC+ output cuts and simmering tensions, continue to weigh on the market. Oil prices rose 2.7% to $69.94 per barrel, while gold held firm at $2,641.05 an ounce, amid firming expectations for a December rate cut from the Federal Reserve.
