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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
KRW
1 month USD/KRW couldn't break below the 1265 level post the Asian close and we climbed to 1275 as equity sentiment fell sharply (closed at 1275.60). Tech equities underperformed, reversing a good portion of the recent bounce.
- The Kospi managed to rise 0.20% yesterday, while the Kosdaq gained 0.65%, but there are some meaningful headwinds ahead of today's session. US and EU equities slumped, while the VIX index surged back above 30%.
- Tech stocks underperformed. The SOX index down over 5%, while the MSCI IT index fell by 4.30%. China's Golden Dragon index lost 2.5%. Note that Tencent dropped 7% in NY after weak Q1 earnings growth.
- USD/KRW is following broader tech sentiment closely in 2022 to date, see the chart below.
- Yesterday saw net equity inflows of $230mn from offshore investors, which is the highest daily inflow since late March of this year. This brings week to date flows to a small positive. Still, foreign investor appetite could be tested following equity market weakness overnight.
- There is no domestic data out today. Be mindful of the Korean authorities, given comments earlier in the week around FX stability. Our sense is above 1290 in USD/KRW may start to draw the authorities concern.
Fig 1: USD/KRW & MSCI World Information Technology Index
Source: MNI - Market News/Bloomberg
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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