SET edges up after Trump opts for slow play on tariffs
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SET edges up after Trump opts for slow play on tariffs

As Trump waits to enact any new trade tariffs, analysts remain bullish on short-term sentiment.
As Trump waits to enact any new trade tariffs, analysts remain bullish on short-term sentiment.

The global and Thai stock markets had a short-term rebound after US President Donald Trump refrained from announcing an immediate increase in import tariffs.

However, analysts warned investors to monitor any policy changes, as the situation remains volatile.

The price of West Texas Intermediate (WTI) crude oil dropped on the morning of Jan 20 after Trump announced he plans to sign an executive order declaring a national energy emergency on his first day in office. The order would expedite oil drilling, pipeline construction, and the establishment of oil refineries.

Oil prices also faced downward pressure after Houthi rebels announced they would limit attacks on merchant ships in the Red Sea. The group said they would only target ships related to Israel, and would refrain from carrying out attacks if Israel fully adhered to the Israel-Hamas ceasefire agreement.

In terms of foreign policy, Trump advocates collecting proceeds from tariffs and other revenue from foreign countries to generate wealth for Americans. However, he said he would not rush to implement the tariff hikes he pledged during his presidential campaign. Rather, Trump plans to allow relevant agencies to assess and study the potential impact before proceeding with any import tariff hikes.

Analysts at Asia Plus Securities (ASPS) said Trump's decision to delay action on import tariffs, combined with expectations of a strong performance by US listed companies, is likely to support positive market sentiment in the short term.

ASPS remains optimistic about the US stock market and recommends speculation, with the S&P 500 index in the range of 5,700 to 6,100 points.

As for the Thai stock market, the SET index closed at 1,359.68 points in the morning session, up 7.15 points (+0.53%), with a total trading volume of 21.2 billion baht.

ASL Securities said the Thai bourse rose thanks to positive sentiment surrounding Trump's inauguration.

Contrary to earlier concerns, Trump plans to implement his policies more gradually than expected, noted the brokerage. Key measures include a 25% import tax on goods from Canada and Mexico, and a 10% tax on Chinese imports, both set to take effect on Feb 1.

The market also benefited from the return of foreign fund inflows and strong financial performance in the banking sector.

Banking stocks gained following the announcement of robust earnings reports for the fourth quarter of 2024.

In addition, concerns eased over the kidnapping of a Chinese celebrity, spurring a recovery in Chinese tourism, further lifting market sentiment.

ASL Securities expects the SET index to maintain its upward trajectory, with a resistance level of 1,370 points and a support level of 1,350 points.

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