1) Thai stock market overview
Thailand’s SET Index closed at 1,667.92 points, increased 23.56 points or 1.43% with a trading value of 78 billion baht. The analyst stated that the Thai stock market moved in the same direction as regional markets in anticipation of China issuing a stimulus plan to boost its economy, resulting in a positive sentiment to the Thai market.
The analyst recommended investors to monitor the Fed’s meeting later tonight, expecting the rate hike would result in the index to move sideways up. Any surprise in the meeting could result in a downside, giving a support level at 1,650-1,640 points and a resistance level at 1,675-1,685 points.
2) Possibility of Russia default is increasing
Russia faces yet another setback as an economic cost of its invasion in Ukraine, Moscow is now due to pay $117 million on two-dollar denominated offshore bonds it had sold back in 2013.
Its sovereign debt would be in default as the country plans to pay in rubles leading to veteran investors left guessing what might eventually happen.
Many are now comparing the case to Greece’s sovereign default back in the days of the Eurozone Crisis. Some speculate an emergency ‘grace period’ that allows Russia another 30 days to make the payment could drag the saga out.
3) China in talks with Saudi to use Yuan for oil sales
Saudi Arabia is reportedly in talks to sell oil to China and be paid in yuan instead of dollars, a move that could shakeup the dominance of oil in the global petroleum market. Globally, 80% of oil sales are done in dollars and the deal between China and Saudi Arabia could challenge the US leadership in the global financial markets.