Futures Focus | Bangkok Post: business

The SET50 Index closed last week at 667.02 points, a decrease of 51.62 points or 7.18% from the previous week. For SET50 Index Futures, the nearest contract month S50U11 (expiring in September 2011) was settled at 663.30 points, a decrease of 54.2 points or 7.55%.

The US stock market last Thursday shed more than 4%, the worst one-day percentage drop in a month and a new 52-week closing low. Investors are mainly worried about the slow global economic recovery after seeing China's Purchasing Managers Index index drop for a third consecutive months. Both Germany and France also reported declines in their manufacturing and services PMI, as did the broader euro zone. US domestic data featured another weekly initial jobless claims number that exceeded 400,000, as had been expected. The Dow Jones Industrial Average fell 391.01 points on the day. It recovered by 37.65 points on Friday but still ended the week down 6.4%, its largest weekly percentage loss since October, at 10,771.48.

The Thai stock market fell more than 3% on Thursday breaking the 1,000 resistance level, and continued its losing streak on Friday, shedding another 3.27% and closing at 958.16 points, for a total decline of 7.4% from the end of the previous week. Moody's decision to cut the ratings of Bank of America, Wells Fargo and Citigroup on Wednesday caused concerns among investors and led many to cut positions in emerging markets. The main issue pressuring the Thai stock market is still the US economic recovery.