The investment strategy team at Krungthai Bank, or Krungthai CIO, analysed the investment outlook for the week of 5 to 9 October 2026, noting that global stock markets remain volatile under pressure from US bond yields, which touched 5.34% during the week, and Brent crude oil prices, which jumped 5% to 102.3 dollars per barrel amid refining tightness, adding pressure to energy inflation. The 10-year US bond yield rose 11 basis points to 5.27%, and the 10-year Thai bond yield moved up in line to 2.39%, while gold prices fell 3.4% to 4,141 dollars per ounce under pressure from the dollar and bond yields. US stock markets closed mixed, with the S&P 500 down 0.27% and the Dow Jones down 1.26%, while the Nasdaq rose 0.45% on support from AI and semiconductor stocks. European stock markets fell 1.1%, and the Japanese market recovered in a concentrated manner. Krungthai CIO maintains an overweight position in equities relative to Neutral over the medium term, focusing on a Barbell strategy that pairs quality growth stocks with the Healthcare sector to reduce volatility. It recommends waiting to accumulate Technology and Semiconductor stocks when prices weaken, while maintaining a positive view on the Power Bottleneck–Grid theme and Vietnamese stocks. The energy sector still plays a role as a Tactical Hedge against geopolitical risk. For fixed income, it focuses on short to medium duration to capture carry yield. Factors to watch include the FOMC meeting minutes on 7 October 2026, US CPI and PPI inflation figures on 14 to 15 October 2026, and the listed-company earnings announcement season.
10-year Thai bond yield moved up in line to 2.39% — yield up means bond price down.
10-year US bond yield rose 11bp to 5.27% (and touched 5.34%), pressuring global stocks — yield up means bond price down.
