Seoul stocks open flat ahead of Fed rate decision amid rising oil prices
Quick Look
- Seoul stocks opened nearly flat on Thursday as investors awaited the U.S.
- Federal Reserve's rate decision amid rising oil prices and Middle East tensions.
- The KOSPI edged up 0.01% to 6,627.95 points by 9:15 a.m., while Wall Street closed lower overnight.
AI-generated summary
Why It Matters
Investors are awaiting the U.S. Federal Reserve's September policy meeting decision on interest rates, while monitoring rising oil prices driven by Middle East tensions, including a recent attack on a Saudi oil pipeline by Houthi rebels who have also seized islands along Red Sea shipping routes.
SEOUL, Sept. 16 (Yonhap) -- Seoul stocks opened almost flat Thursday as investors sat on the sidelines ahead of the latest rate decision from the U.S. central bank and mounting external uncertainties, including rising oil prices.
After opening a tad lower, the benchmark Korea Composite Stock Price Index (KOSPI) was up 0.69 point, or 0.01 percent, to 6,627.95 points, as of 9:15 a.m.
Overnight, stocks on Wall Street closed lower, as investors took a cautious stance over rising oil prices. The S&P 500 closed down 0.45 percent, and the tech-heavy Nasdaq shed 0.78 percent.
A crucial Saudi oil pipeline was struck in an attack and went out of service this week, as Yemen's Houthi rebels seized more islands along Red Sea shipping routes.
Such tensions in the Middle East have pushed Brent Crude futures, the international oil benchmark, up over 2 percent to surpass US$108 per barrel Wednesday.
Meanwhile, the yield on 10-year U.S. Treasurys also touched above the 5 percentage point mark for the first time since July 2007, strengthening expectations for the Federal Reserve to deliver a rate-hike decision in its September policy meeting.
In Seoul, market heavyweights were trading mixed.
Top-cap Samsung Electronics traded flat, while its rival SK hynix added 0.95 percent.
Battery maker LG Energy Solution advanced 1.78 percent, and defense giant Hanwha Aerospace inched up 0.28 percent, while carmaker Hyundai Motor retreated 1.23 percent.
The Korean won was trading at 1,365.8 won against the U.S. dollar, down 1.2 won from the end of the previous stock trading session, as of 9:15 a.m.
What to Watch
AI outlook โ possibilities, not facts
The Federal Reserve will announce a rate-hike decision in its September policy meeting
Likely ยท Within days
Brent crude prices will remain elevated or increase further if Middle East tensions persist
Possible ยท Within weeks
Open Questions
- Will the Federal Reserve raise interest rates in its September meeting?
- How long will the Saudi oil pipeline remain out of service?
- Will Houthi rebels continue to expand their control along Red Sea shipping routes?
