Thailand’s SET Index closed at 1,316.10 points, decreased 2.47 points or 0.19% with a trading value of 45.32 billion baht. The analyst stated that the Thai stock market traded sideways as there were no supporting factors. Investors awaited the announcement of interest rate decisions from the US Federal Reserve and CPI figures from the US. The analyst indicated political uncertainties in Thailand, including the dissolution of the Move Forward Party, the Senate election, as well as the case of former PM Thaksin Shinawatra, to weigh more on the market.
The analyst expected the market to continue trading sideways tomorrow.
Goldman Sachs have forecasted that Brent crude oil prices could climb to $86 per barrel in the third quarter of the year. This projection is based on the anticipation of heightened summer transportation and cooling demands leading to a substantial deficit of 1.3 million barrels per day.
The investment bank has set a floor price of $75 for Brent, citing that lower prices stimulate demand, while a ceiling of $90 is expected due to elevated global inventories and the decisions made by OPEC+ regarding production levels.
Market participants are closely monitoring the upcoming Federal Reserve meeting and inflation data, along with reports on the oil market from OPEC and the International Energy Agency scheduled for Tuesday and Wednesday.
Taiwan is currently grappling with a power shortage issue that could potentially impact chipmakers. The energy-intensive process of chip manufacturing is causing strain on the island’s power supply, as the government faces difficulties in meeting the escalating energy demands.
Chen Jong-Shun, an assistant research fellow at Chung-Hua Institution for Economic Research, highlighted the risks posed to the semiconductor industry due to concerns about power shortages and declining energy reliability. Over the past seven years, Taiwan has experienced three major power outages and numerous minor disruptions, with Northern Taiwan reporting multiple power shortages over a span of three days in April.
With more than 97% of Taiwan’s energy being imported, predominantly from coal and gas sources, the island remains susceptible to energy supply disruptions.
The deputy finance minister in Thailand has expressed the government’s desire for an interest rate reduction during the central bank’s policy review scheduled for Wednesday.
The minister mentioned that the current interest rate level is deemed “too high” and believes that a cut is necessary to support the economy. The stock market decline, as reflected by the SET Index, is attributed to the country’s challenging economic conditions characterized by diminishing domestic purchasing power and a lack of effective coordination between fiscal and monetary policies.
The UK saw a rise of 138,000 unemployed individuals in the three months leading up to April, indicating a downturn in the job market.
This increase in jobless rates marks the fourth consecutive rise, bringing the unemployment rate to 4.4%, the highest level since September 2021.
Employment rates and job vacancies also witnessed a decline in the latest labour market data released before the upcoming general election. The number of individuals unable to work due to long-term ill health reached a new high of 2.83 million, reflecting a 55,000 increase.
