New York stocks rise on U.S. GDP 'surprise growth'…cloudy day before Christmas [Morning Briefing]

The three major U.S. stock indices continued their gains on the 23rd local time as the U.S. economy was shown to have maintained growth in the third quarter this year. On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 48,442.41, up 79.73 points (0.16%) from the previous session. The Standard & Poor's (S&P) 500 index rose 31.30 points (0.46%) to 6,909.79, and the Nasdaq, centered on technology stocks, closed up 133.02 points (0.57%) at 23,561.84. The S&P 500 rose for a fourth consecutive trading day and, based on that day's close, set its 38th record high of the year. The U.S. Commerce Department said the preliminary estimate for U.S. gross domestic product (GDP) growth in the third quarter was 4.3% (annualized quarter-on-quarter). This figure is more than one percentage point higher than the experts' estimate of 3.2% surveyed by Dow Jones and The Wall Street Journal.

◆ International oil prices rise for a fifth straight trading day

International oil prices rose for a fifth straight trading day. Escalating tensions between the two countries, including U.S. President Donald Trump saying to Venezuelan President Nicolás Maduro that "it would be better to step down," sparked 'supply concerns' that put upward pressure on oil. At the New York Mercantile Exchange, West Texas Intermediate (WTI) for February delivery closed at 58.38 dollars per barrel, up 0.37 dollars (0.64%) from the previous session. WTI has risen a total of 3.11 dollars (5.63%) over the past five trading days.

◆ Exchange rate soars…finally closes above 1,480 won

The won–dollar exchange rate rose during overnight trading and then retraced, closing at 1,481 won. The surprise strong third-quarter growth in the U.S. economy, well above market expectations, strengthened the dollar. According to the Seoul foreign exchange market on the 24th, in overnight trading in the early hours the won–dollar rate finished at 1,481.10 won, 0.90 won higher than the previous Seoul market closing price. This matches the previous session's closing price. It is the highest level since the introduction of overnight trading in July last year. Compared with this week's daytime trading close of 1,483.60 won, it is 2.60 won lower.

◆ High inflation and exchange rates cool consumer sentiment…index posts largest drop in a year

With inflation and the exchange rate fluctuating, consumers' economic sentiment worsened again after a month. According to the Bank of Korea's 'consumer sentiment survey,' the Consumer Confidence Index (CCSI) for December was 109.9, down 2.5 points from November (112.4). Although the difference is large, it is the largest drop since last December (−12.3% points), when martial law was in effect. The index had jumped 2.6 points in November due to the resolution of tariff negotiations and the third-quarter growth rate that exceeded market expectations, but it fell again after a month.

◆ Lee Jae-yong tops list of top 100 stock-rich individuals this year

By the end of this year, the combined value of holdings of the top 100 domestic stock-rich individuals rose by nearly 70 trillion won over one year to reach 177 trillion won. First place went to Samsung Electronics Chairman Lee Jae-yong, whose holdings increased by 11 trillion won over the same period. CEO Score, a corporate data research institute, surveyed individual shareholders' holdings and stock values of listed companies as of the end of December last year and the 19th of this month. During this period, the total value of holdings of the top 100 listed stock-rich individuals rose from 107,631,400,000,000 won to 177,213,100,000,000 won, an increase of 69,581,700,000,000 won (64.6%). First-place Lee Jae-yong's stock holdings jumped from 12,033,000,000,000 won at the end of last year to 23,359,000,000,000 won as of the 19th of this month, an increase of 11,326,000,000,000 won (94.1%).

◆ Information and Communications Network Act likely to be processed at plenary session led by the ruling party

The Democratic Party will move to process amendments to the Information and Communications Network Act at today's plenary session of the National Assembly. The bill primarily defines illegal information and false/manipulated information and prohibits their distribution within information and communications networks. It also includes a punitive damages provision that would make those who spread illegal, false, or manipulated information for the purpose of obtaining unjust profits, harming others, liable for up to five times the amount of damages. The Democratic Party argues the bill is intended to block the spread of false/manipulated information and strengthen responsibility. The People Power Party criticizes it as a serious infringement on freedom of expression and began a filibuster (legal obstruction through unlimited debate) starting the previous day. The Democratic Party plans to forcibly end the unlimited debate about 24 hours after the filibuster began, around 12:19 p.m. today, together with other ruling coalition parties, and put the bill to a vote.

◆ Cloudy Christmas Eve…watch for icy roads and black ice on the commute

On Wednesday the 24th, Christmas Eve, the country will be mostly cloudy. Rain will fall in the southern regions through the morning, and the eastern part of the Gyeongsang region and Jeju Island will see rain into the morning. The east coast and Busan, Ulsan, and Jeju Island may see light drizzle of less than 0.1㎜. Expected precipitation amounts are 5–10㎜ for Jeju Island and Ulleungdo and Dokdo, around 5㎜ for the Jeolla region, and less than 5㎜ for the Gyeongsang region. Wet roads may freeze overnight, creating many icy roads and black ice spots, so commuters should be cautious about traffic safety. Daytime temperatures will be 4–12 degrees Celsius, similar to or slightly higher than usual.

Oh Jeong-min, Hankyung.com reporter blooming@hankyung.com