The U.S. unemployment rate started to rise following high inflation with an average annual increase of 9.1% in the consumer price index in June, but Korean securities companies predicted a stock market rally due to a slowdown in inflation in the U.S. in July.
The Wall Street Journal reported on the 4th that economists have predicted that the unemployment rate will rise to 4.3% by the end of next year from 3.6% in June.
The Washington Post, in an article titled “How Much Pain Will American Workers Have to Endure For Inflation to Return to 2%,” said, “The number of workers who have lost their jobs has risen by 2.8% from data released by the Bureau of Labor Statistics on the 2nd.”
The U.S. added 272,000 jobs in June to create 170 million jobs, but this year's job market is expected to be "slightly smaller than in the previous year."
“Workers across the United States in the labor market are negotiating wage increases at the fastest rate in decades, but a significant portion of the workforce that has kept the country running during the pandemic has been marginalized,” the WSJ said. Government public workers, such as teachers, firefighters, sanitation workers, bus drivers, and city government employees, who occupy jobs, have significantly lagged behind those employed in private industry over the past year,” the report said.
Most securities companies in Korea predict a stock market rise in August, and in the KOSPI forecast, the lower end suggested 2280p and the upper end suggested 2650p.
The Korean securities industry judged August to be the turning point in passing the peak of inflation.
Most of the securities companies' reports predict a slowdown in the US consumer price index (CPI) growth rate in July, and the US diagnoses the pace of tightening.
For the August KOSPI index, the expected bands were presented as Korea Investment & Securities 2300-2500p, Samsung Securities 2300-2550p, Shinhan Investment 2300-2550p, Kiwoom Securities 2280-2600p, KB Securities 2350-2600p, and Kyobo Securities 2350-2650p, respectively. .
Daishin Securities announced the target for the first technical rebound at 2650p in the KOSPI.
Yomiuri reported on the 4th that as the confrontation between China and the United States grows, the fluctuation of the yen is increasing.
Korea's consumer price index soared 6.3% year-on-year in July and rose 6.0% in June, the highest since the financial crisis. , rose again to the 3% level in October, and this is a steep upward trend from March (4.1%) to April (4.8%) to May (5.4%) to June (6.0%) and July (6.3%) this year.