The Korean Stock Market Tumbles

Uncertain about the likely impact of the U.S. government’s bank revamp plans and Beijing’s decision to curb credit, the Korea Composite Stock Price Index shed 85 points over just three days to fall to the 1,630 range as the local currency finished at 1,163 won to the USD.

The question is: more downside to come?

The world economy is intertwined. The Asian stock market does not seem to have been decoupled from the U.S.' China may be one of those catalysts that could trigger downside scenarios.

Some contends that the U.S. stock market may muddle through this year, but after the election in November, the U.S. economy and stock market will fall. We shall see.