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FX.co ★ South Korea Shares Due For Support On Tuesday

South Korea Shares Due For Support On Tuesday

Before Monday's observance of Children's Day, the South Korean stock market experienced two consecutive sessions of decline, dropping over 15 points or by 0.6%. Despite this, the KOSPI is expected to resurge, propelled by renewed positive international forecasts concerning interest rates. Both European and U.S. markets have been on the rise and expectations are that Asian markets will follow suit.

On Friday, the KOSPI closed slightly lower due to losses incurred by tech stocks and auto companies. However, this impact was lessened by a show of resilience from the financial sector. The index experienced a 7.02 points or 0.26% drop, closing at 2,676.63 points. The day's trading volume was 329.8 million shares valued at 7.7 trillion won.

There were more decliners (477) than gainers (390). Stocks such as Shinhan Financial, KB Financial, and Hana Financial traded positively, while shares including Samsung Electronics, Samsung SDI, and LG Chem underperformed. Naver experienced notable growth, while Hyundai Motor and Kia Motors recorded significant dips.

Globally, Wall Street also experienced a positive trading day on Monday with the Dow, NASDAQ, and S&P 500 all closing on a higher note. This bullish trend is suspected to be a knock-on effect of cautious comments from Federal Reserve Chair Jerome Powell and weaker-than-expected April job growth, both dissipating fears of rising rates.

Investors now expect a possible rate cut in the approaching months. The likelihood of them being lower by September has been assessed at 83.5%, as measured by CME Group's FedWatch Tool. In other news, crude oil futures saw modest gains after Saudi Arabia's announcement of increased selling price for European and Asian markets, with West Texas Intermediate Crude oil futures closing at $78.48 a barrel, representing a $0.37 or 0.47% increase.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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