1) Thai stock market overview
Thailand’s SET Index closed at 1,560.02 points, decreased 14.50 points or 0.92% with a trading value of 68 billion baht. The analyst stated that the Thai stock market edged lower in the same direction as Asian markets after the report of a fresh record of UK inflation that reached 9.1%, its highest in 40 years, adding concerns to the market of more rate hikes from the central banks and potential recession.
The analyst stated that the Thai stock market could continue to edge lower tomorrow, giving a support level at 1,540 points and a resistance level at 1,565 points.
2) Oil plunges as Biden expects to cut fuel taxes and ask producers for price reduction
Oil prices plunged more than 5% on Wednesday as the U.S. President Joe Biden is pushing for a tax cut on fuel in order to lower the costs for drivers.
On Wednesday, Biden is expected to ask the Congress to give a green light to cut federal taxes by 18.4 cents per gallon on gasoline for three months. However, lawmakers from both parties showed resistance toward the move.
A week ago, Biden slammed on major oil refinery companies in the U.S., demanding them to take immediate actions to ramp up supply while adding that historically high profit margins are unacceptable at a time when Americans continue to see soaring prices at the gas pump.
3) NESDC expects Thai economic growth to exceed 3% in 2022 as tourism and exports improve
The Office of the National Economic and Social Development Council (NESDC) said on Wednesday that Thailand’s economic growth outlook for 2022 will be no less than 3.0 percent, owing to an improvement in international tourist arrivals after Thailand reopened the border in May.
Thai economy in 2022 is estimated to expand in the range of 2.5-3.5 percent, mainly supported by the continual expansion of exports, particularly food products, and Thailand’s reopening.
Thailand has welcomed 2 million tourists in the past five months. The country has set a target of 7-10 million international visitors by year end 2022.
For 2023, NESDC forecasts Thailand’s GDP growth rate of 3.7 percent, which is lower than the projections of other economists, who anticipate the country’s economy expanding by 4.3-4.5 percent.
4) Food and energy price hikes push UK inflation to fresh 40-year high of 9.1% in May
Inflation in the UK reached a record 40-year high of 9.1% in May, as rising food and energy prices continue to worsen the country’s cost of living crisis.
The latest consumer price index, released on Wednesday, was in line with expectations from economists in a Reuters poll.
Consumer prices rose 0.7% monthly in May, somewhat higher than the 0.6% increase economists had predicted, but it was far lower than April’s 2.5% monthly increase, showing inflation is slowing.
The UK’s Office of National Statistics estimated that inflation “would last have been higher around 1982, where estimates range from nearly 11% in January down to approximately 6.5% in December.”