Market Roundup 19 October 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,588.72 points, decreased 1.64 points or 0.10% with a trading value of 48 billion baht. The analyst stated that the Thai stock market moved in sideways trends to strengthen its base after a series of decline last week. The market is looking ahead to earnings season, especially the banking sector. The analyst also recommended investors to monitor the U.S. jobless claim tomorrow.


2) Thai finance minister sees weaker baht as a boost for tourism revival

Thai Finance Minister Arkhom Termpittayapaisith sees a weaker baht as beneficial to the country’s post-pandemic tourism revival, which is the key to accelerating economic growth.

At the conference of finance ministers of Asia-Pacific Economic Cooperation in Bangkok, he said, “Thailand is value for money” and the baht remained competitive in the region and that the central bank should not worry about capital outflows.

This showed that the benefits of a weaker currency outweigh the downsides for the economy that is heavily reliant on tourism, and that the Bank of Thailand’s approach to tightening monetary policy was appropriate when central banks led by the Federal Reserve are using large hikes to combat inflation.


3) UK inflation rises to 10.1% in September

The consumer price index in the United Kingdom accelerated 10.1% in September, according to estimates published Wednesday by the Office for National Statistics, exceeding the 10% rise predicted by analysts polled by Reuters.

Inflation in the UK worsened in the year to September 2022, as the country’s cost-of-living crisis continued to slam people and businesses ahead of a harsh winter.

Food prices went up 14.6% year on year, making it the biggest contributor to inflation in September. Transport prices rose 10.9% year on year, while furniture and household goods prices increased 10.8%.

Following the news, sterling sank against the dollar, trading at $1.1289, down from $1.1330.


4) Eurozone inflation revised down to 9.9% in September, still at record high

The Eurozone reported annual inflation of 9.9% in September, marginally lower than estimated earlier but still at record high, officials showed on Wednesday.

In September 2022, Eurostat, the European Union’s statistical office, stated that consumer prices in the 19 countries using the euro were 9.9%, up from 9.1% in August, though this was a downward revision from an initial estimate of 10%.

Rising energy prices accounted for 4.19 percentage points of the total year-on-year reading, with food contributing for another 2.47 points and services adding for 1.80 points.

Without volatile unprocessed food and energy costs, or what the European Central Bank refers to as core inflation, prices rose 0.9% month on month and 6.0% year on year.

Meanwhile, annual inflation in the European Union was 10.9% in September 2022, up from 10.1% in August. The rate was 3.6% a year ago.