Market Roundup 23 September 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,631.71 points, decreased 13.58 points or 0.83% with a trading value of 63 billion baht. The analyst stated that the decline in Asian markets was due to concerns of economic slowdown in the second half of this year after central banks around the world jumped on raising interest rates to slowdown inflation.

The analyst recommended investors to look ahead to the Thai MPC meeting next week as the market expected a 25 basis points raise.


2) Thailand will lift emergency decree starting Oct 1

Thailand’s Center for COVID-19 Situation Administration (CCSA) agreed on Friday to lift the Emergency Decree and dissolve the CCSA when Covid-19 is declared “endemic” from October 1.

When the Emergency Decree ends on September 30, the Communicable Diseases Act will take effect in Thailand and be used to manage the pandemic. Thailand has declared a State of Emergency since the beginning of the Covid-19 pandemic in March 2020.


3) Eurozone recession looms as consumers cut spending amid rising prices

A survey released on Friday showed the slowdown in economic activity throughout the euro zone has accelerated in September and that the economy is likely entering a recession as consumers cut spending in response to rising cost of living.

S&P Global Flash Eurozone PMI dipped to 48.2 in September, down from 48.9 in August, as predicted by a Reuters poll. September was the third consecutive month with growth below the 50 threshold distinguishing expansion from contraction.

The rising cost of living and increased concern about future prospects led to worsening performances in both manufacturing and services, the note published on Friday said.

Rising energy prices have increased businesses’ cost burdens and have hindered production in some cases, driving up survey price gauges and indicating fresh acceleration of inflationary pressures.


4) UK proposes various tax cuts to bring back economic growth

Liz Truss’ government will cancel its plan to raise corporate tax to 25% as well as reverse a recent rise in income tax and cut taxes for businesses in designated investment zones to boost the country’s battered economic growth.

The decision came after the Bank of England on Thursday said the U.K. was likely already in a recession as the third quarter GDP is forecast to contract.

The Bank of England approved to raise its benchmark interest rate by 50 basis points on Thursday.

The base rate was raised to 2.25% from 1.75% after inflation in the United Kingdom slightly dipped to 9.9% in August, but remained well above the central bank’s target of 2%. Despite being pressured by rising energy and food prices, core inflation, which excludes the aforementioned categories, was still 6.3% on an annual basis in August.


5) Japan to ease more border curbs to restoring tourism and proposes visa-free travel

Prime Minister Fumio Kishida said Thursday that Japan will relax more Covid-19 border curbs next month, including resume visa-waiver travel and individual tourism, in an effort to bolster the country’s tourism industry, which is keen to leverage on the yen’s 24-year low.

The announcement was made by Kishida during a speech at the New York Stock Exchange, and it follows a promise he made in May to bring Japanese border controls in line with those of other Group of Seven nations (G7).

Beginning Oct. 11, Japan will resume individual tourism and visa-free travel for citizens of selected countries who have been vaccinated.

Japan will also remove a daily cap on arrivals, which is currently set at 50,000.