SET Risk of Dip Amid Rising Oil and Bond Yields

Prachachat•Economy•12d ago

Reader Briefing

Kasikorn Securities forecasts the SET Index to fluctuate between 1,575-1,600 points on September 2 due to geopolitical tensions and inflation concerns.

•Kasikorn Securities expects the SET Index to move within the 1,575-1,600 range on September 2.
•Brent crude oil prices closed above 95 dollars per barrel due to intensified situations in the Middle East.
•Global bond yields have reached their highest levels since 2008.
•There are risks of Stagflation, characterized by a slowing economy and high inflation.

Overview

•On September 2, Kasikorn Securities evaluates the SET Index to move within the range of 1,575-1,600 points.
•Brent crude oil prices closed above 95 dollars per barrel because of the intensifying situation in the Middle East and concerns over shipping disruptions through the Strait of Hormuz.
•Global bond yields have risen to the highest levels since the year 2008.
•High inflation levels increase the possibility that the Federal Reserve will raise interest rates faster this year.
•Eurozone inflation in August accelerated to 3.3% from 2.9% in the previous month, increasing pressure on the European Central Bank to raise rates.
•US ISM Manufacturing index figures decreased and were lower than market expectations, reflecting a risk of Stagflation.
•Kasikorn Securities recommends investors be cautious and use a defensive strategy with High Yield stocks.
•Kasikorn Securities highlights PTTEP and KKP as the standout stocks for the day.

Full article content is available on the original source.

Read on Prachachat (Thai Version)View in Google Translate

Source: Prachachat (Original)

Key Entities

Organization

Kasikorn Securities(บล.กสิกรไทย)

The securities firm providing the market analysis and stock recommendations.

Federal Reserve(ธนาคารกลางสหรัฐ)ℹ️

The US central bank that may raise interest rates faster due to high inflation.

European Central Bank(ธนาคารกลางยุโรป)ℹ️

The central bank of the Eurozone that may raise interest rates due to rising inflation.

PTTEPℹ️

A stock highlighted as a standout by Kasikorn Securities.

KKP

A stock highlighted as a standout by Kasikorn Securities.

Place

Middle East(ตะวันออกกลาง)ℹ️

The region where intensifying situations are driving up oil prices.

Strait of Hormuz(ช่องแคบฮอร์มุซ)ℹ️

A shipping route where disruptions are causing market concern.

Europe(ยุโรป)ℹ️

The region where Eurozone inflation accelerated in August.

United States(สหรัฐ)ℹ️

The country where the ISM Manufacturing index was lower than expected.