Market Roundup 12 July 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,546.80 points, decreased 10.60 points or 0.68% with a trading value of 47 billion baht. The analyst stated that the Thai stock market traded in negative territory as investors were waiting for the U.S. inflation, coupled with pressure from China lockdown and weak Thai baht.

The Thai stock market will close tomorrow for holiday, resulting in a selloff to lower the risk.

The analyst recommended investors to monitor the U.S. inflation that could indicate directions of stock markets on Thursday.


2) JPMorgan expects US inflation to moderate in 2H22, overshadowed by worsening economic outlook

JPMorgan noted that the energy prices remain a key uncertainty, especially in Europe. However, even energy prices are now coming under pressure from the worsening economic outlook, which is the evidence suggesting that the inflation rate will start to moderate – potentially substantially – in the second half of 2022.


3) Oil prices drop after China reimposes Covid-19 restrictions

Tuesday saw a drop in oil prices as China reimposed Covid-19 restrictions, including business closures and lockdowns, in bid to rein in new infections, coupled with concerns about a global economic slowdown dampening expectations for fuel demand.

Many cities in China have reportedly adopted new Covid-19 curbs to combat fresh outbreaks, with the key financial hub of Shanghai preparing for another mass Covid testing after detecting the BA.5 omicron subvariant.