Market Roundup 2 September 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,622.15 points, increased 0.20 points or 0.01% with a trading value of 61 billion baht. The analyst stated that the Thai stock market moved in sideways-trends as investors were looking forward to inflation data, scheduled to be released on September 5, and could be lower than the market expected of 8%. Meanwhile, the market also monitored the upcoming ECB meeting to be held on September 8.

The analyst gave a support level for next week at 1,610 points and a resistance level at 1,635 points.


2) Nord Stream gas pipeline set to resume operation on Sep 3

Russian gas exports through a key pipeline Nord Stream 1 to Europe are expected to restart on September 3, relieving markets despite ongoing concerns about additional interruptions this winter.

According to grid statistics, flows will resume at 20% capacity on Saturday, as scheduled. European policymakers have grown increasingly concerned that when Russia shuts the Nord Stream pipeline for what it claims is necessary maintenance, it may not restart.


3) Global bonds fall to first bear market in 30 years

Global bonds have fallen into its first bear market in a generation, according to the Bloomberg Global Aggregate Total Return Index that tracks government and investment-grade corporate bonds, as the market came under pressure from the Federal Reserve’s strong commitment to fight 40-year high inflation even at the cost of a recession by enforcing every tools they have including interest rate hikes.

The Bloomberg Global Aggregate Total Return Index fell more than 20% from its peak in 2021, marking its biggest drawdown since 1990.

The U.S. Fed and ECB are on pace to raise interest rates by 75 basis points at their next meeting in September to tame red-hot inflation. US inflation in July was 8.5% while Eurozone inflation hit a new record high of 9.1% in August, fueled by rising energy prices.

Concerns over rising interest rates have hampered equity markets with bonds and stocks plunging at the same time.


4) Japan urges Sri Lanka’s creditors to cooperate with debt restructuring program

Japanese Finance Minister Shunichi Suzuki on Friday urged all creditor nations, especially China and India, to discuss Sri Lanka’s debt restructuring after the recent announcement of a preliminary approval for an extended loan from the International Monetary Fund (IMF) of about $2.9 billion.

Despite the preliminary approval, the IMF said the new loan is subject to approval by IMF management and the executive board. Meanwhile, the loan cannot be made unless the Sri Lankan government has conducted satisfactory debt restructuring including debt relief arrangements with international creditors.