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Thai Market Pauses as Global Tariff Fears Weigh Heavily

The Thai stock market concluded its two-day winning streak amid fears of global trade war following U.S. tariff announcements. With major sectors experiencing losses, the outlook remains bearish for upcoming trading sessions.

Date: 
AI Rating:   4
Market Overview: The Thai stock market faced a setback, ending its prior gains and reflecting broader global concerns connected to U.S. tariffs. The SET index dropped by 0.93%, highlighting negative trends across food, finance, property, resources, and technology sectors, which could indicate potential downsides for investors.

Impact of U.S. Tariffs: Donald Trump's tariff plan has sent shockwaves through global markets, causing significant declines on Wall Street. The implications are dire as concerns about a trade war could lead to inflationary pressures, adversely affecting consumer spending and strengthening fears around global economic stability. As the report states, Canadian and European countermeasures are in the pipeline, stoking fears of protracted economic tension rather than a quick resolution.

Sector Performance: The drop in the SET was broad-based, with notable declines in key sectors. Bangkok Bank's plunge of 2.36% and the fall of Krung Thai Bank by 3.29% indicate stress within the financial sector, which could restrict lending and investment outlooks further. Energy sector stocks, particularly those like PTT Exploration and Production, are under pressure from falling oil prices, which dropped sharply due to tariff fears and increased OPEC output. The sharp drop in crude oil prices, attributed to tariffs and OPEC output increases, could compress profit margins and revenue growth for companies in this sector.

Upcoming Economic Data: Market participants will closely watch the Thai consumer price index data scheduled for release, as inflation figures could influence central bank decisions and market sentiments significantly. With inflation expectations rising, investors might reassess their positions, influencing stocks particularly in sectors sensitive to consumer spending.

In conclusion, existing market uncertainties stemming from U.S. tariffs, coupled with negative sector performance and upcoming economic data, suggest caution for investors. Continued vigilance will be necessary as the markets respond to evolving geopolitical and economic scenarios.
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