FX.co ★ Thai Shares Expected To Open To The Downside On Tuesday

The Thai stock market has seen an upward trend over the past two sessions, increasing nearly 10 points or 0.7%. This movement places the Stock Exchange of Thailand just above the 1,450-mark, although it suggests a muted opening on Tuesday. Analysts anticipate a subdued performance for Asian markets due to significant upcoming economic and corporate earnings announcements later this week. While European markets presented a mixed and flat response, U.S. indices faced a pronounced decline, likely influencing Asian markets to similary underperform.

On Monday, the SETComposite Index achieved a modest rise, driven by advancements in sectors such as food, finance, property, services, and technology. Specifically, the index gained 7.95 points or 0.55%, closing at 1,452.20, with trading ranging between 1,443.56 and 1,453.70. The session logged a turnover of 9.027 billion shares, valued at 49.414 billion baht, featuring 326 gainers, 178 decliners, and 162 unchanged stocks. Among the active stocks: Advanced Info gained 0.75%, while Thailand Airport fell 0.39%, Asset World dropped 1.08%, Banpu surged 1.47%, and Bangkok Bank rose 0.66%. Other notable movements included Bangkok Dusit Medical climbing 0.85%, Bangkok Expressway advancing 1.23%, B. Grimm inching up 0.44%, BTS Group rising 0.89%, CP All Public jumping 1.56%, Charoen Pokphand Foods increasing 2.04%, and Energy Absolute moving up 2.33%. Kasikornbank gained 0.33%, Krung Thai Card rose 1.05%, PTT Oil & Retail went up 0.60%, while PTT Exploration and Production dipped 0.37%. Siam Commercial Bank added 0.45%, Siam Concrete improved by 1.65%, Thai Oil increased 0.98%, True Corporation moved up 0.91%, TTB Bank faced a significant drop of 3.09%, while Krung Thai Bank, PTT Global Chemical, SCG Packaging, and PTT remained steady.

Turning to Wall Street, the outlook was less promising, as key indices started lower on Monday, continuing to decline throughout the day, closing near their lowest points. The Dow Jones Industrial Average plunged by 398.51 points or 0.94% to settle at 41,954.24. The NASDAQ plummeted 213.95 points or 1.18% to conclude at 17,923.90, and the S&P 500 fell by 55.13 points or 0.96% to finish at 5,695.94.

Wall Street's underperformance was largely attributed to investors revising their interest rate expectations in response to Friday’s strong employment figures. Concerns now orient around the likelihood of only a quarter-point rate cut during the Federal Reserve's upcoming policy meeting on November 7.

Investors are treading cautiously in anticipation of crucial consumer and producer price inflation statistics, alongside key earnings reports from several leading financial institutions. Geopolitical tensions are also affecting market sentiment, as Israeli defense forces launched airstrikes on both Gaza and Beirut on the anniversary of Hamas' cross-border incursion into Israel, marking a continued escalation in Middle Eastern conflicts.

Oil prices experienced a significant surge on Monday, largely due to potential supply disruptions in the Persian Gulf arising from these growing Middle Eastern tensions. November futures for West Texas Intermediate Crude oil soared by $2.76 or 3.71% to close at $77.14 a barrel, marking the highest close in nearly eight weeks.