FX.co ★ Thai Bourse May Reclaim 1,300-Point Level

The Stock Exchange of Thailand (SET) has declined for three consecutive sessions, falling over 20 points or 1.6 percent during this period. Currently, the SET stands just above the 1,295-point threshold. However, indications suggest potential gains on Tuesday.

The outlook for Asian markets is broadly positive, buoyed by optimism regarding interest rate trends. While European markets showcased mixed results, U.S. markets closed on a high, setting a hopeful precedent for Asian markets to follow.

On Monday, the SET posted modest losses driven by declines in the finance, energy, industrial, and service sectors. Specifically, the index dropped 9.97 points or 0.76 percent, closing at 1,296.59 with a trading volume of 11.30 billion shares valued at 40.684 billion baht.

Positive sentiments from Wall Street were evident as major indices opened lower on Monday but quickly rebounded to finish firmly in positive territory. The Dow Jones Industrial Average climbed 188.94 points or 0.49 percent to close at 38,778.10. The NASDAQ surged 168.14 points or 0.95 percent, ending at 17,857.02, while the S&P 500 rose 41.63 points or 0.77 percent to finish at 5,473.23.

The rally on Wall Street was driven by optimism stemming from lower-than-expected inflation data released last week. Although Federal Reserve officials projected a single interest rate cut for this year following their latest policy meeting, market participants are hopeful that this forecast may be overly conservative if inflation continues to decelerate in the coming months.

On the economic front, the Federal Reserve Bank of New York reported that New York's manufacturing activity contracted at a significantly slower rate in June.

In the energy sector, oil prices climbed to a new six-week high on Monday amidst positive forecasts for energy demand. West Texas Intermediate crude oil futures for July rose by $1.88 or approximately 1.25 percent, settling at $80.33 per barrel, the highest close since April 29.