A Selloff in the Afternoon Erases SET Index’s Gain in the Morning to only 1pts
A Selloff in the afternoon session erased most of the gain in SET Index while investors looked forward to the Fed's meeting.
The Thai stock market erased most of the gain earlier this morning in the afternoon session on June 16, 2021, as China’s retail sales missed expectations with a growth of 12.4% in May.
As of 15:21 local time in Thailand, SET Index rose 1.24 points or 0.08% to 1.623.55 points. The index briefly plunged into the negative territory, but the buying pressure recovered the loss.
In the morning session, SET Index closed at 1,630.22 points, increased 7.91 points or 0.49%.
Despite the Chinese government’s effort to boost spending and promoting during the long holiday in May, China’s retail sales rose 12.4%, missing analyst expectations at 13.6%.
Earlier this morning, Japan’s export for May rose 49.6%, but missed expectations of 51.3%.
Stock markets in Asia also struggled in the afternoon session. Nikkei fell 0.51%, SSEC plunged 1.07%, HSI dropped 0.73%, ASX 200 rose 0.09% and Kospi gained 0.62%.
Meanwhile, investors are focusing on the U.S. Fed’s meeting to get a signal on the situation of rising inflation and guidance on policy rate.
Asia Wealth Securities (AWS) believed the Fed will not change monetary policy (maintain short-term interest rates at 0.00-0.25% and will continue to buy quantitative easing (QE) bonds worth USD120bn per month), but the issues that follow are revised economic forecasts, interest rate, inflation and the unemployment rate, including a statement by Fed Chairman Jerome Powell about the right time for a change in U.S. monetary policy. At this meeting, the Fed will begin discussing the appropriate timing for a QE cut.