Market Roundup 8 September 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,640.00 points, increased 0.08 points or less than 0.00% with a trading value of 76 billion baht. The analyst stated that the Thai stock market edged higher in the morning session before dipping slowly in the afternoon in a lack of positive drivers to boost the market as investors took profit before the announcement of ECB and Fed’s statement later today. Moreover, the decline in oil prices also pressured the energy sector as well.

The analyst expected limited upside for SET Index in tomorrow’s session as foreign investors are expected to continue their selloff, giving a support level at 1,625-1,630 points and a resistance level at 1,660-1,665 points.


2) Liz Truss announces a price cap on energy bills

The new British Prime Minister Liz Truss announced her first relief package to help her people with soaring energy bills by implementing a price cap on the bill.

Truss said that a typical household will pay no more than £2,500 per year for each of the next two years,” which will give the average household a £1,000 saving per year.


3) Goldman Sachs expects 75/50/25 rate hike by year’s end with upcycle to extend beyond 2022

Goldman Sachs stated that the firm had raised the Fed forecast to include a 75bp rate hike in September 2022, up from the previous forecast for a 50bp hike, and a 50bp hike in November, up from previous forecast of 25bp.

Terminal interest rate by the end of 2022 would be 3.75-4% after another 25bp rate hike in December.


4) Putin warns to cut energy supplies to Europe if price cap imposed

Russian President Vladimir Putin warned to block all energy shipments to Europe if the EU goes ahead with a proposal to cap the price of Russian gas and suggested limiting a U.N.-brokered deal for Ukrainian grain exports via the Black Sea.

On Wednesday, the European Commission proposed a set of measures, including a price cap on Russian gas, to rein in Europe’s soaring energy prices and punish Moscow for its invasion of Ukraine.


5) Japan’s economic revision shows 3.5% GDP growth in 2Q22

Japan’s economy expanded more than initially reported in the second quarter of this year after lifting several Covid-19 restrictions to boost consumption and business spending in the country.

Gross domestic product (GDP) in Japan grew 3.5% in the second quarter, the final data showed on Thursday, indicating a huge jump from the preliminary estimate of annualized 2.2% growth.