SET Continues a Dull Session as China Will Sanction U.S., Dow Futures Drops nearly 300pts

The Thai stock market continued to trade in negative territory in the afternoon session amid concerns over the rising coronavirus infections in the U.S., while China is expecting to sanction Washington as a punishment on U.S. entities participating in arms sales with Taiwan.

As of 15:05 local time in Thailand, SET Index fell 4.58 points or 0.38% to 1,209.03 points with a considerably low trading value at 28.5 billion baht.

Dow Jones Futures shedded 274 points or 0.97% before the opening on Monday.

Concerns are growing after the U.S. reported a new record high of coronavirus cases with more than 83,000 cases Friday and Saturday after an outbreak in Sun Belt states that broke the U.S. previous record high at 77,300 cases back in July.

As concerns of the rising coronavirus cases grow, oil prices continued to plummet on Monday. West Texas Intermediate (WTI) for December fell $1.33 per barrel or 3.34% to $38.52. The global benchmark Brent Crude for December dropped $1.28 per barrel or 3.06% to $40.49.

More importantly, OPEC+ is expected to increase output by 2 million bpd in January after the group agreed to a production cut by a record amount earlier this year.

 

Meanwhile, China said that it will impose sanctions on U.S. entities participating in  U.S. arms sales to Taiwan, according to a foreign ministry spokesman Zhao Lijian. The country aimed to sanction Lockheed Martin, Boeing Defense and Raytheon.