[Morning Briefing] New York stock market falls amid caution… US offers security guarantees to Ukraine

◆New York stock market, all three indices fall ahead of economic data releases… Nasdaq down 0.59%

The three major New York stock indices all closed lower. On the 15th local time, the Dow Jones index closed at 48,416.56, down 0.09% from the previous session; the S&P 500 index fell 0.16% to 6,816.51; and the Nasdaq index slipped 0.59% to 23,057.41. The indices began the day in positive territory but soon saw selling pressure that erased all gains. With lingering concerns about an artificial intelligence (AI) industry bubble and major releases such as November nonfarm payrolls, the November unemployment rate, October retail sales, and the November consumer price index approaching, market participants refrained from taking positions, which is interpreted as the reason for the pullback.

◆US offers Ukraine 'NATO-level' security guarantees… Disagreement on territorial issues

The United States proposed security guarantees to Ukraine at the peace talks that are similar in level to NATO's 'collective defense clause.' U.S. special envoy Steve Witkoff and others said, "About 90% of the matters discussed have reached agreement," and explained that "the security guarantees include very strong deterrence in terms of the size of the Ukrainian military." However, there was no agreement on territorial issues. The US demanded that Ukraine withdraw in line with Russia's position seeking the Donbas region in eastern Ukraine, but Ukraine has maintained that it cannot cede territory. Ukrainian President Volodymyr Zelensky said, "We still consider that our positions differ on territorial issues."

◆Korea Zinc's US smelter: US Commerce Secretary calls it "an end to foreign dependence… a big win"

Howard Lutnick, the US Secretary of Commerce, welcomed Korea Zinc's contract with the Donald Trump administration to build a large-scale smelter in Tennessee, calling it "a big win for the United States." In a statement posted on X (formerly Twitter), he said, "We announced a major investment with Korea Zinc to build a state-of-the-art critical mineral smelter and processing facilities in the United States that will produce 540,000 t of essential materials annually," and added, "Many things will be produced in the United States, ending dependence on foreign supply chains." He also said that by securing priority access to production volumes, the US will put national security and manufacturing first. Korea Zinc's project is expected to involve an investment of about 10.95 trillion won, and the US Commerce Department plans to provide subsidies of up to about 300 billion won.

◆Democratic Party finalizes discussions on creation of a special court for insurrection at party meeting… aims for passage within the year

The Democratic Party will hold a party meeting at the National Assembly at 2 p.m. to finalize internal opinions on establishing a special court dedicated to insurrection cases. Based on legal reviews requested from an outside law firm, the party will organize its position and is expected to move quickly with the goal of handling the bill in the plenary session within the year. Earlier, when concerns about unconstitutionality were raised regarding the bill to establish a special court for insurrection, the party leadership commissioned a legal review to the law firm LKB Pyeongsan. The Democratic Party plans to prepare a final draft that minimizes constitutional issues based on legal advice and discussions among lawmakers. If the content is confirmed at the party meeting, it is expected to be submitted to next week's plenary session for a vote.

◆Winter rain falling in the Seoul metropolitan area… temperatures warmer than usual

On Tuesday the 16th, the country will be cloudy overall, with light rain in the Seoul metropolitan area, inland and mountain areas of Gangwon, and northern Chungcheong. According to the Korea Meteorological Administration, the rain that began in the northern and southeastern parts of Gyeonggi Province in the early morning is expected to spread to Seoul, Incheon, southwestern Gyeonggi, and northern Chungcheong during the morning. Expected precipitation amounts are: △Seoul, Incheon, Gyeonggi around 1㎜ △central and southern inland and mountain areas of Gangwon less than 5㎜ △northern inland and mountain areas of Gangwon around 1㎜ △northern Chungcheong, central and northern Chungbuk around 1㎜. Temperatures will be milder than usual, with morning lows of -4~5°C and daytime highs of 5~14°C. Fine dust levels are expected to be 'bad' in Seoul and southern Gyeonggi, and 'good' to 'moderate' in other regions.

O Se-sung, Hankyung.com reporter sesung@hankyung.com