US and Thai stocks rise as Trump delays tariff hikes
Global and Thai stock markets experienced a short-term rebound following US President Donald Trump’s decision not to immediately increase import tariffs. Analysts have advised investors to remain vigilant regarding potential policy changes, as current conditions are unpredictable.
On January 20, the price of West Texas Intermediate (WTI) crude oil declined after Trump announced plans to sign an executive order declaring a national energy emergency on his first day in office. This order aims to accelerate oil drilling, pipeline construction, and oil refinery establishment.
Additionally, oil prices were pressured by the Houthi rebels’ announcement of limiting attacks on merchant ships in the Red Sea. The group stated they would target only ships associated with Israel and would refrain from attacks if Israel fully complies with the Israel-Hamas ceasefire agreement.
In foreign policy, Trump expressed a desire to collect proceeds from tariffs and other foreign revenue to boost American wealth. However, he indicated a cautious approach towards implementing the tariff increases promised during his campaign, allowing relevant agencies to evaluate the potential impact before proceeding with any tariff hikes.
Analysts at Asia Plus Securities (ASPS) noted that Trump’s decision to postpone import tariff actions, together with anticipated strong performances by US-listed companies, is expected to support positive market sentiment in the short term. ASPS remains optimistic about the US stock market, recommending speculation with the S&P 500 index predicted to be between 5,700 and 6,100 points.
The Thai stock market also saw gains, with the SET index closing at 1,359.68 points in the morning session, a rise of 7.15 points (0.53%), and generating a trading volume of 21.2 billion baht (US$624 million). According to ASL Securities, the Thai market’s rise was attributed to positive sentiment surrounding Trump’s inauguration.
Contrary to initial concerns, Trump intends to implement his policies more gradually, with key measures including a 25% import tax on Canadian and Mexican goods and a 10% tax on Chinese imports, effective from February 1. The market also benefitted from the resurgence of foreign fund inflows and strong financial performance in the banking sector.
Banking stocks rose following the announcement of strong fourth-quarter earnings reports for 2024. Additionally, easing concerns over the kidnapping of a Chinese celebrity spurred a recovery in Chinese tourism, further enhancing market sentiment, reported Bangkok Post.
ASL Securities anticipates the SET index to continue its upward trend, with a resistance level of 1,370 points and a support level of 1,350 points.
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