In the past several hours, global investors have unexpectedly faced the impact of a geopolitical whirlwind. The 'Korean Martial Law Incident' has shocked the world, although Wall Street analysts generally believe that this incident has little impact on American investors, but international investors need to pay close attention.
What happened?
Late Tuesday night, South Korean President Yoon Suk-yeol suddenly announced the implementation of an emergency martial law, citing the existence of 'anti-national forces' among domestic political opponents. Although he subsequently lost in a standoff with the National Assembly and was forced to revoke this martial law, his move not only shocked the entire country but also made global investors 'sweat', marking the first declaration of martial law in South Korea since 1980.
On the morning of the same day, the South Korean central bank also held an emergency countermeasure meeting, issuing strategies for short-term liquidity increase and market stabilization. In a statement released after the meeting, the South Korean central bank indicated that it would provide any special loans to inject funds into the market if necessary.
Market observers pointed out that Yoon Suk-yeol's actions triggered a flow of funds into traditional safe-haven assets, including U.S. Treasury bonds, leading to the depreciation of the Korean currency and raising concerns about political turmoil in South Korea.
South Korea is an important ally of the United States and a key link in the global supply chain.
Krishna Guha, head of Evercore ISI's global policy and central bank strategy team, stated in a report that while the situation in South Korea has not caused significant impact on global markets, it has indeed triggered a flow of safe-haven funds into the United States, Japan, and Switzerland. #BTC☀ #ETH🔥🔥🔥🔥