It's time for financial stocks to start making a strong rebound. U.S. stocks, lo

It's time for financial stocks to start making a strong rebound. U.S. stocks, local bank concerns, rising on weak dollar and interest rates and expectations of large technology stocks' performance

The U.S. stock market started higher as technology stocks, which fell in the aftermath of the FOMC the previous day, rebounded as government bond rates fell due to sluggish employment indicators and the dollar weakened. However, financial stocks returned to the rise as the risk of local banks weakened due to the New York Community Bank (-11.13%), which plunged the previous day. However, it rose again in the second half of the market, reflecting the weak dollar and the fall in interest rates. In particular, it is positive that related stocks expanded their strength ahead of the announcement of the performance of large technology stocks (Dau +0.97%, Nasdaq +1.30%, S&P 500 +1.25%, Russell 2000 +1.39% and Philadelphia Semiconductor Index +0.46%)

* Variables: Slack employment, interest rates and weak dollar

At the FOMC the day before, Fed Chairman Powell said he would not have "conviction" of slowing inflation in March "at this point," weakening the possibility of a rate cut in March. But before that, Powell said he would cut interest rates if employment was solid, but if employment weakened, and argued that "a little more" of "continuous" inflation reduction data was needed and that the rate cut would be carried out based on this. Increasing the importance of employment and price indicators

In the meantime, the number of mass layoffs in January surged to 82,307 from 34,817 previously. In addition, the number of new unemployment claims has increased from 215,000 to 224,000. After the announcement of related indicators, the decline in government bond rates has widened and the dollar has weakened. Of course, the ISM manufacturing index improved significantly from 47.1 to 49.1. New orders were announced from 47.0 to 52.5, and the price index was announced from 45.2 to 52.9, leading the move. However, although the weak dollar and interest rates were briefly reduced due to the announcement of the results, the impact was limited. The market is more sensitive to interest rate cuts such as employment than the economy

Meanwhile, the New York Community Bank (-11.13%) that acquired the bankrupt Signature Bank plunged 38% in its previous day's earnings announcement, confirming a bigger-than-expected loss due to increased provisions for bad debt. The news re-emphasized the risk of local banks last year, triggering a slump in financial stocks. However, as government bond rates continue to fall, the risk of local banks is limited. The market's attention is focused on employment, price indicators, and corporate performance.

* Features: Meta jumps after-hours on dividend payments, share buybacks and improved earnings

Apple (+1.33%), which reported earnings after the market closed, reported better-than-expected earnings. In particular, iPhone sales increased. However, service sales slowed, and sales in China fell by 11%. This led to a 1% drop after-hours. On the other hand, Meta Platforms (+1.19%) jumped 14% after its first dividend payment, $50 billion in treasury stock purchases, and earnings sharply exceeded its expectations. Amazon (+2.88%) has seen better-than-expected earnings and margin ratio rise sharply. However, although cloud service was sluggish and guidance was sluggish, it was up 5% after-hours. Microchips (+0.55%) are falling 3% after after-hours as guidance fell short of expectations. Tesla (+0.84%) is sluggish on news of free self-driving hardware for customers who purchase Model Y in China. It means intensifying competition, so it is generally going through the process of digesting sales

Qualcomm (-4.98 percent) fell due to mixed performance and weak guidance. On top of that, Citigroup lowered its investment opinion. On the other hand, Quavo (+6.03 percent) rose as it reported better-than-expected earnings. ASML (+2.38%) rose after Jefferies selected it as the top pick, saying concerns over restrictions on sales in China were exaggerated. Other semiconductor industries such as Nvidia (+2.44%), AMD (+1.66%), and Intel (+0.65%) showed sluggish performance in the market, but showed signs of rise due to backlash due to falling interest rates on government bonds. Philadelphia Semiconductor index, which had been falling due to this, rose 0.46 percent.

As interest rates declined due to the announcement of the Treasury bond issuance plan on the previous day and the decline in interest rates widened due to sluggish employment indicators, solar power companies such as First Solar (+1.09%), SunPower (+22.11%), SolarEdge (+4.17%), Sunrun (+2.90%) and Inphase Energy (+1.26%) are clearly strong. Pharmaceutical companies Merck (+4.64 percent) rose on lower-than-expected losses and better guidance. Peloton (-24.28 percent) plunged due to sluggish earnings and guidance.

The previous day, the New York Community Bank (-11.13%) saw its profit turn to net loss and announced a reduction in dividends due to a surge in bad debt amortization, plunging 38% and falling again today. Bank risks are highlighted in the aftermath, and JP Morgan (-0.36%), BOA (-1.35%), and Wells Fargo (-2.21%) as well as regional banks such as Comerica (-2.89%), Western Alliance (-7.57%), and Jayons Bancorp (-6.32%) also fell. However, unlike last year, it was positively accepted that related concerns are not likely to expand, and the market burden was eased by reducing the fall.

* South Korean stock market: Attention to foreigners' supply and demand

The MSCI Korea ETF rose 3.08 percent and the MSCI Emerging Index ETF rose 0.96 percent. The Philadelphia Semiconductor Index rose 0.46 percent, the Russell 2000 index rose 1.39 percent and the Dow Transportation Index rose 0.83 percent. Night futures are expected to rise 0.48 percent, with South Korean stocks expected to open up around 0.7 percent. The one-month NDF dollar/won exchange rate is expected to fall 5 won to 1,327 won.

On the previous day, the Korean stock market continued to rise with issues related to PBR 1x continuously, and expanded its gains, centering on related stocks. In addition, expectations for shareholder return policy are also a factor in the strength of related stocks. In particular, it is characterized by the fact that foreigners and institutions are concentrating on supply and demand. In the meantime, the U.S. stock market is in favor of the Korean stock market that it has received backlash buying due to excessive fall while digesting the FOMC. On top of that, the after-hours surge expected to improve the performance of large technology stocks is also favorable.

However, the key to this trend is whether to continue or not, and it is necessary to pay attention to stocks related to the need for profit improvement and shareholder return policies in the future. However, caution should be paid to companies whose cash flows have not improved as they are also showing signs of change like theme stocks. In addition, it is noteworthy that a surge in large technology stocks could lead to backlash against technology stocks, which have recently weakened in the Korean stock market. Eventually, the Korean stock market is expected to show changes after starting the rise by around 0.7 percent, paying attention to foreigners' supply and demand.

* FICC: International oil prices expand volatility during the day

International oil prices fell on positive assessment of Israel-Hamas ceasefire negotiations efforts. Related negotiations are underway in Qatar, and although volatility has increased due to the inflow of news of the settlement and the deletion of related news during the day, attention has been paid to the contents related to the ceasefire. Natural gas from the U.S. and Europe fell on expectations of easing risks in the Middle East

Gold rose on the back of lower interest rates and a weaker dollar. Copper and other nonferrous metals mostly fell, except for nickel, on U.S. commercial real estate issues. Wheat rose on a weaker dollar, but soybeans and corn fell on supply concerns

The dollar remains weak against other exchange rates due to sluggish U.S. employment indicators. In addition, the BOE froze interest rates, but the market expected seven to freeze and two to announce them as 6:2:1. However, the pound is strong as Governor Bailey insists that there is still a lot of data to cut rates. At the same time, the Eurozone consumer price index slowed to 2.8 percent from 2.9 percent, but it is strong against the dollar in line with market expectations.

Treasury yields continued to fall the previous day due to sluggish U.S. employment indicators. In particular, they are more sensitive to factors that fall expectations on the Treasury's bond issuance plan. The decline was partially reduced due to the inflow of reversals in the second half of the market.

2/2 Global Financial Market Trends

◆ the U.S. stock market
- - DOW: 38,519.84p (+369.54p, +0.97%)
- - S&P500: 4,906.19p (+60.54p, +1.25%)
- - NASDAQ: 15,361.64p (+197.63p, +1.30%)
- Russell 2000: 1,974.42p (+27.08p, +1.39%)

◆ Related to Korea
- MSCI Korea Index ETF: $61.30 (+1.83, +3.08%)
- MSCI Emerging Index ETF: $38.76 (+0.37, +0.96%)
- - Eurex kospi 200: 343.80p (+1.65p, +0.48%)
- NDF exchange rate (one month): KRW 1,327.40 / expected to start 5 won lower than the previous day
- Philadelphia Semiconductors: 4,280.49 (+19.56, +0.46%)

◆ the foreign exchange market
- Dollar Index: 103.064 (-0.210, -0.20%)
- EUR/USD: 1.0870 (+0.0052, +0.48%)
- Dollar/yen: 146.44 (-0.48, +0.33%)
- Pound/dollar: 1.2745 (+0.0057, +0.45%)

◆ the U.S. government bond market
- 2-year: 4.2066% (0.0bp)
- 5-year: 3.8111% (-2.4 bp)
- 10-year: 3.8765% (-3.6bp)
- 30-year: 4.1172% (-4.9 bp)
- 10Y-2Y: -33.01bp (3.58bp reversal enlargement)
(Gift for government bonds)
- - 2YR T-Notes: 102*28 1/4 (+0*01 1/4, +0.04%)
- - 5YR T-Notes: 108*22 1/2 (+0*09 1/4, +0.27%)
- - 10YR T-Notes: 112*28 1/2 (+0*17 , +0.47%)
- - US T-Bonds: 124*01   (+1*21 , +1.35%)
- - Ultra US T-Bonds: 131*22   (+2*14 , +1.89%)

◆ Commodity Market ($, sweet grain, copper cent)
- - WTI: 73.82 (-1.87, -2.47%)
- Brent crude: 78.70 (-1.64, -2.04%)
- Gold: 2,071.10 (+4.50, +0.22%)
- Silver: 23.24 (+0.11, +0.46%)
- Zinc (LME, 3M): 2,478.00 (-49.50, -1.96%)
- Copper: 385.35 (-5.70, -1.46%)
- Corn: 447.25 (-1.75, -0.39%)
- Wheat: 601.50 (+5.50, +0.92%)
- Soybean: 1,