We believe domestic politics will dominate the SET index direction in July as the new government takes shape, with the first vote to select the prime minister just days away.
On the external front, US Federal Reserve policymakers are set to meet later this month, and China is widely expected to announce new economic stimulus measures.
We expect foreign funds to flow into the Thai bourse if the formation of the government and selection of the prime minister proceed without incident.
Earnings speculation is likely to kick in as well, with banks due to announce second-quarter results next week. The earnings reporting season is due to end on Aug 15.
Concerns about more US interest-rate increases, meanwhile, have put downward pressure on global equities.
Fed chairman Jerome Powell has said two more rate hikes, at least, will probably be necessary to tame inflation this…
