Seoul shares likely to suffer volatile sessions next week
SEOUL, July 30 (Yonhap) -- South Korean stocks are expected to face volatile sessions next week mainly due to the political standoff in the United States over its debt ceiling, analysts said Saturday.
The KOSPI, the country's key stock index, shed 1.75 percent, or 38.02 points, this week to close at 2,133.21 on Friday, weighed down by an escalating political battle over raising the U.S. debt ceiling.
"The ongoing talks over the U.S. debt ceiling may further spook investors," said Lee Seung-woo, an analyst at Daewoo Securities.
Default on U.S. debt payments, at least in the short term, would send a shock through global credit markets, analysts said.
The continuing political impasse in Washington has pushed the world's largest economy closer to risking a default on U.S. government debts if the limit is not raised by the August 2 deadline.
The Republican-led House passed legislation Friday night, but it was voted down later by the Democratic-controlled Senate.
Meanwhile, the U.S. stock market closed lower on growing concerns over debt default and weak economic data.
The Dow Jones industrial average lost 4.2 percent this week to close at 12,143.24 on Friday. The tech-laden Nasdaq Composite Index was down 0.36 percent to 2,756.38. (Yonhap)
The KOSPI, the country's key stock index, shed 1.75 percent, or 38.02 points, this week to close at 2,133.21 on Friday, weighed down by an escalating political battle over raising the U.S. debt ceiling.
"The ongoing talks over the U.S. debt ceiling may further spook investors," said Lee Seung-woo, an analyst at Daewoo Securities.
Default on U.S. debt payments, at least in the short term, would send a shock through global credit markets, analysts said.
The continuing political impasse in Washington has pushed the world's largest economy closer to risking a default on U.S. government debts if the limit is not raised by the August 2 deadline.
The Republican-led House passed legislation Friday night, but it was voted down later by the Democratic-controlled Senate.
Meanwhile, the U.S. stock market closed lower on growing concerns over debt default and weak economic data.
The Dow Jones industrial average lost 4.2 percent this week to close at 12,143.24 on Friday. The tech-laden Nasdaq Composite Index was down 0.36 percent to 2,756.38. (Yonhap)
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