Market Roundup 9 May 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,604.49 points, decreased 25.09 points or 1.54% with a trading value of 81 billion baht. The analyst stated that the Thai stock market moved negatively in the same direction as other Asian markets, pressured by the potential of Fed’s aggressive moves on interest rate hike to curb inflation. Meanwhile, the war between Russia and Ukraine still continued and reflected negatively on inflation outlook.

The analyst expected SET Index in tomorrow’s session to move in sideways trends in speculation of the U.S. inflation data on Wednesday, giving a support level at 1,595-1,600 points and a resistance level at 1,620-1,625 points.


2) Dollar Index hits 20-year high amid volatility in the market

The Dollar Index reached a record high in 20 years amid volatility in the market over the Fed’s rate hike and quantitative tightening, Russia’s war in Ukraine, rising inflation and China’s lockdown. 

The Dollar Index rose to 104.187 on May 9, 2022, a level not seen since 2002. The index was 8.02% higher this year. 

The rupee dropped as much as 0.7% to 77.4337 a dollar on Monday to a record low.


3) China’s exports slow down in April amid Covid-19 outbreak and lockdown

Exports and imports in China slumped in April amid worsening Covid-19 outbreak leading to a cutback on demand and undermining production.

Export growth in April slowed to 3.9% in dollar terms from a year earlier, compared to an increase of 14.7% in March, customs data showed Monday. This marks the weakest growth pace since June 2020. On the other hand, imports were unchanged in April after sliding 0.1% in the previous month.


4) Saudi Arabia continues to cut oil prices for Asian buyers

Saudi Arabia cuts oil prices for buyers in Asia amid lockdowns in China weighing on demand.

In four months, Saudi Aramco lowered its prices.  The state-controlled company dropped its key Arab Light crude grade for next month’s shipments to Asia to $4.40 a barrel above the benchmark it uses, from $9.35 in May.

Aramco also lowered all grades for the north west Europe region and almost all for the Mediterranean. Prices for U.S. customers were kept unchanged from May.