Krungthai CIO: Risky Asset Market Faces Selling Pressure Due to AI Investment Concerns, Oil Price Hikes, and US Political Uncertainty

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Published 2026-11-03

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Key summary

Krungthai Bank's investment strategy team analyzed the investment outlook for the week of November 2-6, 2026. The US stock market continued to decline due to selling pressure in the Hyperscalers and Semiconductor sectors. The European market recovered, and the Japanese market saw a slight increase. The yield on US government bonds with a 10-year maturity fell to 4.93%, while the yield on Thai government bonds with a 10-year maturity stood at 2.16%. Brent crude oil prices rose to $117 per barrel, and gold prices fell below $3,900 per ounce. Krungthai CIO maintains a positive outlook on the stock market in the medium term, recommending gradually accumulating quality stocks and diversifying investments in growth stocks, along with healthcare stocks, to reduce risk. The strategy combines high-quality growth stocks with healthcare stocks that have strong financial positions. Key factors to watch include the results of the US midterm elections on November 3, the Bank of England meeting on November 5, and US inflation figures on November 10 and 13.

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Business Insight — Publisher’s Perspective

For businesses in Thailand involved in manufacturing or exporting, the reported decline in global stock markets driven by AI valuation concerns and US political uncertainty suggests that capital markets may experience volatility rather than a fundamental collapse in corporate earnings. The specific rise in Brent crude prices to $117 per barrel due to Middle East supply risks indicates that input costs for energy-intensive industries could face upward pressure, potentially affecting profit margins if hedging strategies are not adjusted. Conversely, the drop in gold prices below the $3,900 support level might influence corporate treasury decisions regarding asset allocation, though firms should proceed cautiously as price base formation is still pending. The recommendation to monitor upcoming US CPI/PPI data releases and the Bank of England meeting implies that interest rate expectations could shift, which may impact the cost of borrowing for Thai companies with foreign currency debt or those planning overseas expansion. While the analysts maintain a medium-term positive stance on equities, the advice to accumulate quality shares gradually during pullbacks suggests that Thai exporters might consider timing their equity investments or financing rounds carefully amidst these global fluctuations.

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