Direxion Daily MSCI South Korea Bull 3x Shares (KORU) plummeted 21.85% during intraday trading on Thursday, as the leveraged exchange-traded fund faced severe selling pressure.
The sharp decline was driven by a broad global market selloff triggered by a speech from former U.S. President Donald Trump detailing military actions against Iran. The address sparked significant risk-off sentiment across financial markets, leading to substantial declines in Asian equities. South Korea's benchmark KOSPI index fell 4.47%, which directly impacted the 3x leveraged ETF designed to magnify the daily performance of the underlying index.
Global markets experienced heightened volatility following Trump's remarks, with precious metals, cryptocurrency markets, and U.S. stock index futures also registering notable declines. The geopolitical tensions highlighted in the speech prompted investors to flee riskier assets, resulting in the pronounced downturn for the South Korea-focused leveraged fund.
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