The Thai stock market skyrocketed by 40 points in the afternoon session in response to the U.S. election as Joe Biden flipped Wisconsin and Michigan, making him only a step away from being the U.S. president.
As of 15:52 local time in Thailand, SET rose 40.28 points or 3.30% to 1,262.72 with a trading value of 62.4 billion baht.
Analysts expected Biden’s win could ease a lot of tension between the U.S. and foreign countries, while promising more stimulus to the economy. AWS stated that if Joe Biden wins the election, the following are what the security company expected to see; (1) the world trade situation eases (2) the baht has a chance to appreciate from investments expected to flow back into the region which depressing the dollar value. (3) Increased stimulus measures, especially government spending with a policy to improve infrastructure in the country, an investment of USD2.0tn (4) the increase in the U.S. Treasury yields and (5) attractiveness of alternative energy stocks will increase according to Joe Biden’s policy to support clean energy, it is negative about the price of oil.
Meanwhile, if Donald Trump wins the election, what AWS expected to see are (1) the global economy is once again uncertain from concerns about the world trade situation, including trade disputes expected to increase both from China and the European Union (2) American First policy will return to pressure overall Thai and regional exports. As a result, the capital moved back to the U.S. so the dollar will appreciate and (3) the price of crude oil has a chance to increase because of Mr. Donald Trump’s policy, he continued to support Fossil fuels.