Thailand’s SET Index experienced a decline of 1.58%, closing at 1,314.50 points, primarily driven by sell-offs in large-cap stocks and profit-taking in the banking sector. Trading volume reached 53.36 billion baht, heavily impacted by significant declines in companies such as CPALL, DELTA, and others associated with GULF. Analysts anticipate a sideways market trend in the coming week. On a more positive note, discussions led by Mr. Pichai Naripthaphan, Thailand’s Minister of Commerce, with Japanese trade leaders focused on enhancing economic trade and investment ties between Thailand and Japan.
The Minister emphasized the importance of promoting innovation-driven industries and leveraging Thailand’s strategic position as a gateway to ASEAN markets. He also highlighted the need to overcome trade barriers and encourage sustainable development through partnerships in green technology. Amid global economic uncertainties, investors remain cautious, with analysts recommending a focus on defensive stocks and sectors that are more resilient to market fluctuations. Furthermore, the Thai government is expected to announce new fiscal measures aimed at boosting domestic consumption and attracting foreign direct investment in the near future.
In China, the People’s Bank of China (PBOC) is considering a potential interest rate reduction from the current 1.5% to stimulate domestic demand and enhance liquidity. This strategy aligns with Beijing’s ongoing efforts to establish a more market-oriented interest rate system as the nation navigates complex global economic conditions. Analysts believe this policy shift also aims to bolster investor and business confidence while ensuring economic stability.
Global Economic Policies and Tariff Discussions
The European Central Bank might reassess its “restrictive” monetary policy stance by March, with potential plans to reduce borrowing costs to 2.5%, according to a Bloomberg report. In the United States, President Donald Trump indicated he would soon decide on whether to exempt Canadian and Mexican oil imports from an impending 25% tariff, while also warning BRICS nations against diverging from the US dollar as a reserve currency, threatening 100% tariffs. These announcements echo statements made after his election victory in November 2024.
Asian Markets: Major Asian stock markets reported a positive session, with indices including the Nikkei 225, Shanghai Composite, Hang Seng, ASX 200, Sensex, and Nifty50 all showing gains. Currency markets were mixed, with the AUD/USD and NZD/USD appreciating, while the USDCNY saw a decline.
U.S. Markets: U.S. equities closed higher on Thursday, with the Dow Jones Industrial Average rising 0.4%, the S&P 500 up by 0.5%, and the tech-heavy Nasdaq increasing by 0.3%. The market’s positive performance was attributed to strong earnings reports from major tech companies and details regarding President Trump’s tariff plans.
Interest Rates: Mortgage rates experienced a slight decrease, with the average 30-year fixed rate now at 6.96%, providing benefits to potential homebuyers and those considering refinancing options.
Economic Data: The U.S. GDP grew by 2.3% in the fourth quarter, showing a slowdown compared to the previous quarter. Jobless claims fell to 207,000 for the week ending January 25, while continuing claims came in at 1,858,000. The Pending Home Sales Index dropped to 74.2, representing a 5.5% decline in December from November.
Company News: Major companies like Microsoft, Meta, and Intel reported their earnings, with both Microsoft and Meta expressing confidence in the performance of DeepSeek’s AI model. Comcast experienced a decline in broadband customers but reported solid results for the fourth quarter, while UPS reported weaker-than-expected fourth-quarter earnings.
Tariffs: President Trump announced intentions to impose tariffs on goods from Mexico, Canada, and China, citing concerns over the distribution of fentanyl and the ongoing synthetic opioid crisis in the U.S.
Global Market Overview: Global markets displayed mixed results today as investors weighed economic data alongside corporate earnings reports.
In the United States, the S&P 500 gained 0.3%, bolstered by strong performances in technology and healthcare, while the Dow Jones Industrial Average fell 0.2% due to disappointing earnings from industrial companies. The Nasdaq Composite rose 0.5%, driven by gains in semiconductor stocks.
European markets mostly declined, with the STOXX 600 down 0.4%, led by losses in energy and financial sectors. Germany’s DAX fell 0.6%, and the UK’s FTSE 100 edged down 0.2% amid ongoing concerns regarding rising interest rates.
In Asia, markets exhibited resilience; Japan’s Nikkei 225 rose 1.1% thanks to a weaker yen benefiting export-driven companies. China’s Shanghai Composite increased by 0.8% due to optimism surrounding government stimulus. Hong Kong’s Hang Seng Index also saw a 0.9% gain, supported by technology and property stocks.