Time now for an in-depth look at the market news this afternoon.
And for that, I'm joined on the line by Dr. Kim Sei-wan, Professor of Economics at Ewha Womans University.
Professor Kim, good afternoon. Thanks for coming on today.
The minutes from the last months Federal Open Markets Committee meeting show the general view at the Fed is that tapering could start either next month or in December and conclude around the middle of next year. At least as of this meeting, they saw the economic recovery as being on track. What do you make of these minutes from the Fed?
Stocks on Wall Street were broadly higher on Wednesday as investors weigh the numbers on inflation and also look at corporate earnings coming out. The S&P was up point three percent and the Nasdaq, with its tech stocks, up more than point-7 percent. What's the story in the global markets?
Today in Korea, the rebound in stocks continued, strength almost across the board, but not so for carmakers with the supply chain issues the sector is facing. The KOSDAQ was up too by more than three percent. Tell us about the domestic market.
Professor, we've seen some big moves in the exchange rate lately with a strengthening dollar. The won had depreciated to just shy of 12-hundred won to the dollar, the highest rate in quite a while, which had led foreign investors to sell Korean stocks. But now the rate has come down to under 11-90. What's behind that move, and what will be driving the exchange rate going forward?
Finally, the household debt situation. In September, data show the increase in lending did not slow down at all despite the government's measures aimed at reining it in. There was a slight decrease in mortgage loans being written, but that was offset by a rise in unsecured loans. What's driving the continued borrowing, and if it is to be reined in, what should be done?