KOSPI · September 14, 2012
The day the Fed started open-ended buying
+2.92%
single-day change vs previous close
Part of a longer stretch
Five months as central banks stepped in again
early in it · 2012-07-25 → 2013-01-02, +14.80% over the whole period
What happened that day?
- The KOSPI rose 2.92% on the day
- The day before, the US Fed had announced a third round of bond buying. What differed from the first two was that no end date was set
- It meant buying would continue until employment was good enough, and the market read that as a safety net
- More money pushes into riskier assets, and Korea, classed as an emerging market, sits where that flow lands
- It came after the ECB president had said in July that he would preserve the euro, so both central banks were pushing the same way
- The advance of this period came from flows rather than earnings
Sources
Every figure on this page is recomputed from the original daily closing prices and checked against them at build time. The account of what happened is written from the sources listed above.