In early trading on Monday, the Thai stock market declined by 16 points, mirroring regional trends affected by adverse global sentiment. This was in response to U.S. President Donald Trump’s announcement of a planned 25% tariff on steel and aluminum imports, coupled with speculation that the Federal Reserve may not rush to lower interest rates.
As of 10:08 a.m. BKK time, the SET Index stood at 1,265.53, down 16.56 points or 1.29%. According to Liberator Securities, the Thai market experienced a steep drop influenced by international market sentiments. President Trump’s decision to impose a 25% tariff on steel and aluminum imports from all countries has reignited trade war concerns.
Meanwhile, the U.S. unemployment rate fell to 4%, below the anticipated 4.1%, indicating a robust labor market with increased hourly wages, sparking inflation worries. This situation has tempered expectations of a Fed interest rate cut. The FedWatch Tool has adjusted its forecast for a 2025 interest rate reduction to just one cut in July, down from the initially expected two cuts, which has negatively impacted risk assets.
The Thai stock market remains vulnerable to negative news, prompting investors to sell off holdings swiftly. The index saw gains last Friday and any positive developments could trigger a rebound, considering the current SET Index is below the 10-year average P/E ratio, at -2SD.
The support level is set at 1,250 points, with resistance at 1,280 points.
