Kaohoon Morning Brief – 3 October 2022

1) KSS expects SET Index to slow down on rising concerns of US inflation

Krungsri Securities (FSS) expected weaker SET Index in today’s session to its support level of 1,575-1,580 points in concerns of rising US inflation after the core PCE price index for August rose higher than expected, increased by 4.9% YoY.

Higher inflation could result in the US Federal Reserve accelerating its rate hike cycle, which would damage the economy.


2) Oil prices soar 3% on reports of OPEC+ cutting output

The oil prices soared in the morning session on Monday of Asian trading hours after the report that OPEC+ is considering an output cut of around 1 million barrels per day at the meeting this week to stabilize the market.

The international benchmark Brent crude rose $2.52 or 2.96% to $87.66 per barrel, while the West Texas Intermediate gained $2.39 or 3.01% to $81.88 per share. Both indexes bounced back from a loss last Friday as the resurgence of Covid-19, especially in China, hampered energy demand.

However, Reuters reported that the Organization of the Petroleum Exporting Countries and its allies could cut 0.5 – 1 million barrels per day of oil production within its group to support the market.


3) Tesla reports 343,830 deliveries in 3Q, missing expectations of 364,000 units

Tesla reported 343,830 deliveries for the third quarter of 2022, marking a record high for the company but missing 364,000 deliveries estimated by Street Account.

Total production increased to 365,000 units from 258,580 units in the second quarter this year. Still, the company is reportedly facing higher commodity prices in 3Q that could have an impact on its performance.