Market Roundup 25 May 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,625.18 points, decreased 1.05 points or 0.06% with a trading value of 68 billion baht. The analyst stated that the Thai stock market fluctuated in today’s session, gaining more than 10 points in the morning session, but traded lower in the afternoon as investors lowered the risk before the Fed’s meeting later tonight. The analyst expected the market to be positive if the FOMC does not implement any aggressive moves, giving a support level at 1,615 points and a resistance level at 1,635-1,640 points.


2) Saudi Arabia signals no plan for gradual increase in oil production

Saudi Arabia’s foreign minister said  there’s nothing more the kingdom can do to tame oil markets, implying that the world’s biggest crude exporter has no plan to accelerate its gradual production increases.

Meanwhile, The Organization of Petroleum Exporting Countries and its partners are raising daily crude production by around 430,000 barrels each month. Major importers including the US and Japan have called on the alliance, known as OPEC+, to increase output more quickly. The group’s struggling to reach even its current monthly target, with many members pumping below their quotas.


3) Yen rises 3% from 20-year low on speculation of weakening dollar

The yen is recovering from a 20-year low, suggested by the options market and analysts with rebound has some room to run.

After rising over 3% from its trough, Japan’s currency may climb back to 125 as global growth worries fuel demand for havens and U.S. yields ease, according to Shinkin Asset Management and IG Markets Ltd. Option markets indicate there’s a 64% chance the yen will strengthen past the 125 mark by end-June.

The decline in dollar is driving the yen’s rebound as traders speculate that aggressive rate hikes by the Federal Reserve tightening may tip the US economy into a recession.