Market Roundup 21 November 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,618.86 points, increased 1.48 points or 0.09% with a trading value of 52 billion baht. The analyst stated that the Thai stock market moved narrowly in a lack of positive drivers to boost the market. The GDP growth that was in line with expectations had a slight impact on the stock market. The analyst expected SET Index to continue moving in a limited range, giving a support level at 1,610 points and a resistance level at 1,630 points.


2) Goldman Sachs trims 4Q oil outlook on China new Covid outbreaks

Increasing Covid fears in China and a lack of clarity over the Group of Seven nations’ plan to cap Russian oil prices led Goldman Sachs to reduce its oil price projection for the fourth quarter of 2022 by $10, to $100 per barrel.

“The market is right to be anxious about forward fundamentals, due to significant Covid cases in China and a lack of clarity on the implementation of the G7′s price cap,” economists at Goldman Sachs stated in a report, adding that further shutdowns in China would have the same effect as the 2 million barrels per day of reduced production enforced by OPEC+.

China reported three Covid deaths over the weekend, the country’s first since May of this year.

With hundreds of new cases being reported each day, Beijing, the capital of China, has recently increased their Covid restrictions.


3) Less than 30% of Japanese now support Fumio Kishida as prime minister

On Sunday, Minoru Terada, Japan’s internal affairs minister, resigned, becoming the third cabinet member to leave in less than a month under Prime Minister Fumio Kishida.

Terada’s departure could further weaken the embattled premier, who has ratings below 30% in several recent opinion polls and whose resignation to apologize about the Unification Church made it difficult to carry out a political agenda amid funding scandals.


4) German producer prices fall in October, raising hopes inflation have peaked

German producer prices unexpectedly fell by 4.2% MoM in October, the first month-on-month drop since May 2020 and the biggest monthly drop in PPI history, due mainly to a drop in prices for electricity and distributed natural gas, according to data released on Monday.

According to the office, electricity rates dropped 16.9% across all consumer categories compared to September 2022, while natural gas prices were down 9.0%.

The trend sparks hopes that inflation is gradually peaking: “Perhaps the first signal of cyclical price pressure easing,” said LBBW economist Jens-Oliver Niklasch.

In October, Germany’s consumer prices were 11.6% higher year on year, as compared to the rest of Europe.