Middle East crisis and US inflation trigger 2% fall in Thai stocks

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Escalating the Middle East conflicts and persisting high inflation in the US are contributing to a more than 2% fall in Thai stocks. The Stock Exchange of Thailand (SET) is encountering renewed selling pressure, with the index nearing a crucial resistance level of 1,400 points.

Concurrently, gold prices have seen a sharp increase, reaching nearly US$1,950 (70,870 baht) per ounce amidst expectations of increased tensions between Israel and Hamas.

The rise in US inflation is putting additional pressure on the Federal Reserve to either hike interest rates or sustain them at their current high levels for an extended period to curb inflation. This is predicted to change once foreign investors see substantial progress in the government’s economic policies, which is expected to provide a boost to equities and the baht.

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