Global · 2026-07-07
WSJ Warning and the NATO Summit
The Wall Street Journal warned that Korea's equity market could spiral into a "Squid Game"-like scenario, driven by its concentration in Samsung Electronics and SK hynix, leverage products, and foreign capital outflows. Domestic market participants partly acknowledged the criticism, but also pushed back, arguing that the very act of foreign selling is itself amplifying volatility.
In the Canadian submarine program, Ottawa selected Germany's Thyssenkrupp Marine Systems as preferred bidder over Hanwha Ocean. The announcement came just ahead of the NATO summit, which President Lee Jae-myung, Canadian Prime Minister Mark Carney, and U.S. President Trump are set to attend, with defense-spending discussions expected. While Korea reportedly cleared all technical evaluations, it lost out due to Germany's broader package of economic and security support tied to its NATO alliance ties.
[Global] Dollar Strength Seen Persisting as NATO Summit Lifts Defense Stocks
Goldman Sachs projected continued dollar strength — and weakness in the euro and yen — citing delayed Fed rate cuts and structural inflation pressure linked to AI investment. Societe Generale likewise argued a strong dollar is likely to persist since falling oil prices alone won't resolve inflation concerns.
Some at the US Treasury are wary that overheated AI-related asset prices could turn into a bubble, and analysts noted this is also driving investors to buy dollars as a hedge.
Saudi Arabia and the United Arab Emirates continued raising oil output, with Saudi Arabia cutting its August crude price to Asian buyers by $11 a barrel; the UAE also posted its second-highest June production on record, keeping crude under downward pressure near $68 a barrel.
At this week's NATO summit, discussions on the war in Ukraine will be accompanied by the announcement of large new defense-industry contracts. NATO's secretary-general said member states would present concrete plans to hit the 5%-of-GDP defense spending target, and expectations around this lifted US defense stocks such as RTX, helping underpin the Dow's advance. Reports also emerged that the US and China are planning a summit in September, feeding hopes of easing trade tensions.
The overnight U.S. and global market brief above is compiled from 삼프로TV 오전 방송 (https://www.youtube.com/watch?v=A2b9ZPCesDQ).