Major stock markets traded lower on Monday despite better-than-expected 1Q22 China GDP of 4.8%, while the tension between Russia and Ukraine continues to weigh on the global economy.
As of 10:18 local time in Thailand on April 18, 2022, Nikkei dropped 1.83%, SSEC fell 0.49%, Kospi decreased 0.13% while IDX Composite rose 0.20%.
Stock markets in Hong Kong and Australia are closed for holiday.
Thailand’s SET Index opened at 1,668.17 points, decreased 6.17 points or 0.37%.
China’s first quarter gross domestic product (GDP) of 2022 rose by 4.8%, beating economist expectations of a 4.4% increase from the same period last year, according to the data released by the National Bureau of Statistics on Monday.
Oil prices rose above $110 level once again amid lingering concerns on tight global supply following sanctions on Russian commodities, especially crude oil due to its advancement in Ukraine.
In the morning session on Monday, the international benchmark Brent crude rose 0.80% to $112.59 per barrel. West Texas Intermediate rose 0.65% to $107.65 per barrel.
Mr. Ekpawin Suntarapichard, investment strategist of the Siam Commercial Bank Securities (SCBS), through “Kaohoon Jor Talad Program” on April 18, 2022, stated that there are several negative sentiments that could pressure the markets whether it be rising Covid cases after Songkran holiday, as well as a spike in China, monetary policy of central banks around the world, Fed’s rate hike and tightening balance sheet to curb inflation.
Mr. Suntarapichard expected limited upside for SET Index as the market could move in negative territory.
The strategist recommended investors to monitor the earnings season of Thai banks, Thai exports data on April 22, Fed’s minutes on April 21, and IMF meeting.
