By Stephen Culp
NEW YORK (Reuters) – A surprise declaration of martial law in Korea that had sent the won tumbling and U.S. Treasuries giving a brief safe-haven boost was lifted on Tuesday, removing a source of geopolitical unrest that has world markets had to deal with.
The move provided a modest boost to US stocks, which remained muted and range-bound for most of the session.
The Nasdaq and Nasdaq managed to reach new record highs.
“These developments, combined with those in France and the outcome of the US presidential election, all create uncertainty as investors consider how to position themselves heading into 2025,” said Greg Bassuk, CEO of AXS Investments in New York.
South Korean profits fell to their lowest level in two years against the dollar after South Korean President Yoon Suk Yeol declared martial law in an attempt to block attempts by opposition parties to hijack the parliamentary process . He later reversed the decision, honoring a parliamentary vote against the measure.
Crude oil prices rose on supply concerns related to OPEC+ production cuts and simmering tensions in the Middle East.
The Department of Labor released its closely watched Job Openings and Labor Turnover Survey (JOLTS), which showed that job openings increased and layoffs decreased, supporting the idea that the labor market is gradually cooling.
On Friday, the Labor Department will unveil its long-awaited November employment report, which will be analyzed for clues about the U.S. Federal Reserve’s policy decisions in December and beyond.
“There is a lot of economic data on the calendar this week, so investors are still waiting as this week’s data will likely influence the Fed’s December interest rate decision,” Bassuk added.
The decline of 76.59 points, or 0.17%, to 44,705.41; the S&P 500 rose 2.73 points, or 0.05%, to 6,049.88; and it rose 76.96 points, or 0.40%, to 19,480.91.
European shares hit a one-month high as political unrest in France, which has pushed the French government to the brink of collapse, kept investors on edge.
The MSCI index for shares around the world rose 3.16 points, or 0.37%, to 867.80.
The index rose 0.37%, while the broad European index rose 8.89 points or 0.44%
Emerging market shares rose 9.83 points, or 0.90%, to 1,096.22.
The dollar closed nominally lower against a basket of world currencies as financial markets reinforced expectations that the Fed will make another rate cut at this month’s policy meeting.
But losses were kept in check by the developing political crisis in France and continued tariff threats from newly elected President Donald Trump.
China’s economy reached its weakest level since the 2008 financial crisis, despite concerns about tariffs.
The , which measures the dollar against a basket of currencies including the yen and euro, fell 0.03% to 106.34, while the euro rose 0.1% to $1.0508.
The Korean won weakened 0.97% against the dollar to 1,418.35 per dollar.
Against the Japanese yen, the dollar weakened 0.08% to 149.47.
was uncharacteristically subdued and extended his flirtation with the elusive and closely watched $100,000 mark.
In cryptocurrencies, bitcoin gained 0.29% to $95,686.00. fell 0.17% to $3,608.46.
Ten-year Treasury yields rose in the wake of the JOLTS report, as investors reaffirmed their expectations for a 25 basis point rate cut at the end of the Fed’s Dec. 17-18 policy meeting.
The yield on U.S. 10-year benchmark bonds rose 4 basis points to 4.234%, up from 4.194% late Monday.
Thirty-year bond yields rose 5.5 basis points to 4.4129%, up from 4.358% late Monday.
Yields, which typically move in line with Fed interest rate expectations, fell 2.3 basis points to 4.175% from 4.198% late Monday.
Crude oil prices gained ground ahead of an expected OPEC+ decision to approve further production cuts.
Oil’s boom has also been aided by a fragile ceasefire between Israel and Lebanon.
rose 2.70% to $69.94 per barrel while rising to $73.62 per barrel, up 2.49% on the day.
Gold held up despite rising expectations for a Federal Reserve rate cut in December.
rose 0.13% to $2,642.25 an ounce. The US rose 0.26% to $2,641.70 an ounce.
