Coinbase (NASDAQ: COIN) stock regained strong upside momentum last week and bounced almost 50% after the company entered a partnership with BlackRock. What next?
“Foreign funds are using equities and bonds as tools to speculate on the baht’s strength,” said Pornthep Jubandhu, head of the investment research group at SCB Asset Management Co., the nation’s biggest private money manager with $45 billion of assets. “This rally could be short-lived as fundamentals are very weak with the poor economic outlook, trade dispute and domestic politics.”
Source: Stock Exchange of Thailand, Bloomberg
The Bank of Thailand this week lowered its growth forecast as the U.S.-China trade war hurt exports. Domestic political risk is also rising with the ruling coalition holding just a tenuous majority in the House of Representatives, and the opposition alliance set to fight what it sees as continued military control.
“There is little logic about the gain in domestic equities, currency and some other assets,” said Kavee Chukitkasem, deputy managing director at Kasikorn Securities Pcl. in Bangkok. “The economy is so weak with sluggish consumption, investment, exports and tourism. ”
Meanwhile, the “slim parliamentary majority will probably be the key risk to political stability," he said.
The week all eyes will be turning to the U.S. Consumer Price Index report scheduled to be released on Wednesday will show whether the U.S. economy got any relief in July from surging inflation.
Shares of the ride-hailing giant Uber (NYSE: UBER) jumped more than 18% on Tuesday after the company reported stronger than expected second-quarter revenue numbers. The company reported record revenue of $8.1 billion in the second quarter while Uber still posted a net loss of $2.6 billion.
Last week, most of the major global stock indices and precious metals ended in positive territories. This week's economic calendar is packed with important events which include the US employment report and the OPEC+ meeting.