Asia Plus Securities (ASPS) expected Thailand’s SET Index to move in a sideways trend, seeing that the Asia markets did not respond positively after the report of a slowing down in US PCE last night that could point to an end of rate-hike cycle by the Fed. The market was monitoring the report of China’s manufacturing PMI.
Still, there are some uncertainties in Thailand that pressured stocks in specific sectors and lack of positive catalysts.
The Organization of Petroleum Exporting COuntries and its allies, collectively known as OPEC+, agreed on Thursday to cut output voluntarily for early next year, which is now approaching two million barrels per day (bpd) after the latest agreement. The deal was said to be fulfilling Riyadh’s goal for this meeting to further tighten global supply for what it calls “stabilization” of oil prices.
The group produces around 43 million bpd, which already reflects a 5-million-bpd cut of which 3.66 million bpd are from the group, while Saudi Arabia volunteered for an additional 1 million bpd cut, along with Russia for around 400,000 bpd of production cut.
According to several sources, the new voluntarily cut by the group is approaching 2 million bpd as Riyadh extended its supply cut further. Russia will up its tightening to 500,000 bpd and other allies will also contribute as well.
China’s Caixin manufacturing purchasing managers’ index for November came in at 50.7, compared to 49.5 in October and a forecast for 49.8 by a Reuters poll. The figure came after official numbers Thursday showed China’s manufacturing sector contracted for a second straight month with the index falling to 49.4 in November, dropping further from 49.5 in the previous month. The reading was also below Reuters’ estimate for 49.7.