New York Stock Exchange Rises on Trump's First Day; International Oil Prices 'Fall' [Morning Briefing]

◆ New York Stock Exchange Closes Strong, Easing Tariff War Concerns

On the first trading day after Donald Trump was inaugurated as President of the United States, the major indices of the New York Stock Exchange rose collectively as concerns over a 'tariff war' eased. The Dow Jones index closed at 44,025.81, up 1.24% from the previous session, the S&P 500 index rose 0.88% to 6,049.24, and the NASDAQ index closed at 19,756.78, up 0.64%. President Trump had declared a 10% tariff on all imports and a 60% tariff on Chinese imports, but in his inaugural address, he showed a conciliatory attitude by stating, "Universal tariffs are not yet ready." With Trump indicating a moderation in the pace of tariff imposition, the market is hopeful for more moderate policies than initially expected.

◆ "Drill Oil Freely"... International Oil Prices Fall Due to Trump Effect

International oil prices have fallen for the third consecutive day due to President Trump's energy expansion plans. On the New York Mercantile Exchange, West Texas Intermediate (WTI) for February delivery closed at $75.89 per barrel, down 2.56% from the previous session. Brent Crude for March delivery also closed at $79.29 per barrel, down 1.07% from the previous session. In his inaugural speech, President Trump declared an energy emergency, signing executive orders to resume offshore oil drilling and withdraw from the Paris Climate Agreement, stating, "We will drill oil freely."

◆ U.S. Considers Retaliation Against Unfavorable Taxing Countries... Withdraws from OECD Minimum Tax

President Trump has ordered a review of retaliatory measures against countries that impose unfavorable taxes on U.S. companies. The 'America First Trade Policy' memorandum released by the White House on Trump's first day in office includes a directive to investigate whether foreign countries impose discriminatory or extraterritorial taxes on U.S. citizens or companies under Section 891 of the United States Code (USC), which allows the President to double the tax rate on foreign companies and citizens without congressional approval if there is foreign discrimination. A separate memorandum also instructs a review of retaliatory measures against countries that flaunt the OECD's 'Global Minimum Tax' agreement and impose unfavorable taxes on U.S. companies.

◆ High-Ranking Officials Investigation Office's Attempt to Forcibly Detain Yoon Fails... Criticism of 'Lack of Communication'

The High-Ranking Officials Investigation Office attempted to forcibly detain President Yoon Seok-yeol but failed. After President Yoon attended the third hearing of the Constitutional Court's impeachment trial, the office visited the Seoul Detention Center for forced detention, but President Yoon did not immediately move to the detention center and instead received treatment at the Seoul Military District Hospital, returning to the detention center around 9 p.m., leaving the office empty-handed. Special circumstances aside, nighttime investigations are prohibited after 9 p.m. due to human rights protection regulations. As President Yoon had planned his hospital visit in advance, obtaining external treatment permission from the detention center warden after receiving treatment from the detention center's medical officer the previous day, there is criticism that the office's lack of communication was the cause of the failure.

◆ Nationwide Fine Dust 'Bad'... Dense Fog in the Capital Area and West Coast

On Wednesday the 22nd, the fine dust concentration will be at 'bad' levels in most regions nationwide, including the capital area, Gangwon Yeongseo, Chungcheong, Honam, and Yeongnam. Seoul, southern Gyeonggi, Gangwon Yeongseo, Sejong, and Chungbuk are forecasted to be at 'very bad' levels in the morning. In the capital area, the western coast of Chungnam, the northern inland of Chungnam, and the western coast of Jeonnam, there will be dense fog with visibility less than 200 meters in the morning, so caution is advised for traffic safety. The central region will be mostly cloudy, with occasional clouds from the morning, while the southern region and Jeju will have occasional clouds. The highest daytime temperature is forecasted to be between 5 and 13 degrees.

Oh Se-seong, Hankyung.com reporter sesung@hankyung.com