Wall Street romps but global markets fret over Mideast

Wall Street romps but global markets fret over Mideast

Recap: The US stock market keeps rising with buying support from technology shares, while investors watch progress on US tax reform and whether the Congress will pass a budget and avoid a government shutdown. Financial markets around the globe are nervously monitoring the political situation in the Middle East after US president Donald Trump endorsed Jerusalem as Israel's capital.

The SET Index moved in a range of 1,686.02 and 1,712.49 points before closing at 1,702.52 points, up 0.4% from the previous week, in heavy trade averaging 52.14 billion baht a day. Foreign investors were net sellers of 5.43 billion baht, brokers sold 300.82 million and retail investors sold 1.73 billion baht worth of shares. Institutional investors bought a net 7.46 billion baht to top up funds to meet year-end RMF and LTF demand.

Newsmakers: Palestinians in the occupied West Bank and Gaza Strip have gone on strike and are taking to the streets in protest against Donald Trump's recognition of Jerusalem as Israel's capital. Muslims also protested yesterday in Malaysia and Indonesia, while many staunch US allies including Saudia Arabia, France and the UK said they did not support the decision.

Rising levels of debt pose "large risks" to China's economy, according to the International Monetary Fund (IMF). In its first report since 2011 on China's resilience to shocks and contagion, the IMF said it still had concerns over imbalances in the economy. A stress test on Chinese banks found four-fifths were vulnerable.

EU finance ministers have adopted a blacklist of tax havens that includes 17 non-EU jurisdictions seen as "not cooperative" on tax matters. Meanwhile, the euro zone economy expanded by 0.6% in the third quarter.

South Korea has raised the income tax rate for its highest-earning companies, as President Moon Jae-in seeks to fulfil his vows to fight inequality and create jobs.

India's GDP is likely to top US$6 trillion by 2028, overtaking Japan as the world's third-largest economy, according to the Japan Center for Economic Research.

The Bitcoin rollercoaster continues, with prices briefly topping $17,000 this week before sliding back to $14,800 in Asian trading yesterday and later recovering to $16,000. The cryptocurrency began the year below $1,000 but continues to rise despite warnings of a dangerous bubble. The first bitcoin futures contracts will begin trading on the Chicago Futures Exchange this weekend.

Singapore Airlines has changed the path of its Seoul-Los Angeles flights after a recent North Korean missile test. It joins a growing group of airlines, including Lufthansa and Air France, that have rerouted planes to avoid the North's airspace.

Gulf Energy Development Plc, one of the country's largest power producers, on Wednesday recorded a 27.8% rise from its IPO. The issuing size of 24 billion baht was the largest on the SET in 11 years.

Tycoon Sathien Setthasit plans to pour $300 million into helping his energy-drink company Carabao Group Plc take on Red Bull in China. A recent slide in the firm's shares signals investors see a tough fight ahead. The outlay is earmarked for marketing and distribution in the next three years to tap rising Chinese demand for energy beverages.

Local business leaders have voiced concerns about the stronger baht, which recently hit a 31-month high around 32.5 to the US dollar, saying it could hurt exports and tourism as well as the overall economy.

The consumer confidence index in November rose for the fourth consecutive month to a 33-month high. The University of the Thai Chamber of Commerce said the index rose to 78 from 76.7 in October.

Salaries in Thailand will increase by an average of 5%, driven by strong economic performance in Asia Pacific, says the human resources consulting firm Mercer.

Thailand is grouped among the "progressive prosperity" countries that have largely eliminated extreme poverty and fostered a large middle class, says the World Bank.

The first Bangkok edition of the Michelin Guide to fine dining featured the legendary street-food purveyor Je Fai, who charges decidedly non-street prices, alongside other expected big names such as Gaggan, Nahm and Le Normandie. In all, 18 restaurants were named, with 14 receiving one star and the rest getting two. There are also 35 Bib Gourmand restaurants -- a new category without stars created to provide recommendations to diners.

Coming up: China will release November consumer and producer price indices today, followed by renminbi loan data and November auto sales on Monday.

On Tuesday, Japan and the US will release November producer prices and China will release November foreign direct investment data. Euro zone and German business confidence indices for December are due the same day.

On Wednesday, the US and Germany will release November inflation figures, Japan will announce October machinery orders and the UK will release October unemployment numbers.

Stocks to watch: Maybank Kim Eng Securities Thailand recommends accumulating selected stocks such as KBANK, BBL, LPN and AP.

Tisco Securities recommends tourism-related stocks that will benefit from seasonal holidays and the shopping tax rebate, including BEAUTY, BJC, CENTEL, COM7, CPALL, ERW, MINT and ROBINS. High-dividend stocks are identified as KKP, TCAP, SPCG, TTW, HANA, ASP, KCAR, PL, AIT, LALIN, QH and TMT.

Technical view: Bualuang Securities sees support at 1,680 points and resistance at 1,715. Maybank Kim Eng Securities sees support at 1,680 and resistance at 1,720 points.

Do you like the content of this article?
COMMENT