Ending 2017! What happened? What next?

Farewell 2017, there are many significant situations happened and something may still effect in the markets next year.
- USA, EU and Japan economy grow up
- Thai GDP grows 3.6% (export grows up 8.9% in 8 months of the year)
- Dow Jones rose above 20K the first time in the history;
- SET rose back above 1700 points;
- Euro rose from 1.05 at the beginning of the year to the highest at 1.2;
- Fed increased interest rate 3 times in 2017 even inflation lower than expectation and may rise interest rate more next year;
- OPEC and Russia extended the period to cut oil supply;
- North Korea tensions (Hwasong-15 is the long-range missile which can destroy USA. if UN boycotts North Korea harder, it may the beginning of a war.);
- President, Donald Trump chose Jerome Powell as the next Federal Reserve chief;
- Trump’s tax reform reduces tax;
- ECB reduce QE starting from January 2018;
- Catalonia would like to be independent;
- Crypto market becomes a hot investment of the year;
- Bitcoin price rose near 20K dollar;
In 2017 is the first time of many years that world big economy such as USA, EU and Japan grow at the same time. As the result, it supports Thai economy grows up more than expected from 3.4% to 3.6%. World Bank may upgrade Thailand from middle to high income status. Hence, Thai government may make policy to support 5.8 million people who have low income. Stock exchange Thailand rose up above 1700 points and it may rise back to the historical high at 1789 points or higher next year.
In contrast, the tensions on Korea peninsular may continue or increase, if UN and USA boycott North Korea harder. This factor may keep gold price stay high in 2018. While oil price may consider OPEC agreement but OPEC and Russia may worry about the losing market shares for others. North Korea, oil price and other political uncertainty may give negative for investor’s opinion and may become the slow down factors in financial markets.
Crypto market value exceeded more than $300 billion so governments may consider laws and conditions to support its growth next year. Bitcoin price may get back its bullish trend .There are 2 groups of people who believe and do not believe in block chain technology but crypto market may keep growing by the believers. Some governments may use or create their crypto coins to boost economy such as Venezuela (Petro coin), Estonia (Estcoin) and India.

By Niramon Nitnitiphruet
Financial analyst, Olymp Trade

Olymp Trade Review