Market Roundup 5 July 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,541.30 points, decreased 18.97 points or 1.22% with a trading value of 76 billion baht. The analyst stated that SET Index fell to a new low this year, reflecting concerns over rising inflation in Thailand and weakening Thai baht as well as gradual increase of Covid-19 infection.

The analyst expected SET Index to move in sideways trends tomorrow, giving a support level at 1,527-1,530 points and a resistance level at 1,560 points.


2) Eurozone growth slows to 16-month low in June

The euro zone’s business growth slowed further in June, according to a survey. Forward-looking indicators show the region could fall into recession this quarter as the cost of living crisis makes consumers wary.

The S&P Global final composite Purchasing Managers’ Index (PMI) fell to a 16-month low of 52.0 in June from 54.8 in May, just ahead of a preliminary 51.9 estimate.

The euro today (July 5) dropped to the lowest in two decades, hitting US$1.0283. This comes as fears of a recession in the euro zone grow as gas prices soar and the conflict in Ukraine shows no signs of ending.


3) Gas prices hit 4-month high ahead of Russian Nord Stream 1 annual maintenance

The price of TRPC Natural Gas TTF Monthly Continuation 1, which tracks European gas prices, rose to EUR176, marking a fresh high since March 2022 amid mounting concerns about tight supplies in Europe ahead of winter.

Russia will proceed with a temporary shutdown of the Nord Stream 1 pipeline for its annual maintenance. Nord Stream 1 is the European Union’s biggest pipe for importing gas from Russia.

Investors are concerned that the shutdown will disrupt European gas supplies while the group is racing to fill storage ahead of this winter. Some went as far as speculating that the Russian will use this opportunity to shut down gas feeding for good.


4) Australia’s central bank lifts rates by 0.50bp to 1.35%

Australia’s central bank on Tuesday lifted interest rates for the third consecutive month and said further increases were on the horizon as the country attempts to slow soaring inflation.

The Reserve Bank of Australia (RBA) raised its cash rate by 50 basis points to 1.35 percent at its July policy meeting, bringing the total hike since May to 125 basis points and making this the fastest series of moves since 1994.