Market Roundup 21 October 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,591.32 points, decreased 1.41 points or 0.09% with a trading value of 50 billion baht. The analyst stated that the Thai stock market slowed down before the long holiday, while the European bank plunged as a result of Liz Truss’ resignation. The analyst recommended investors to keep track of earnings season and the announcement of the U.S. GDP as well as the ECB meeting next week.


2) Oil prices fluctuate amid rough week; slowdown worries persist

Friday’s oil prices swing followed a turbulent week as worries about a global economic downturn lingered.

Following a flat day on Thursday, West Texas Intermediate crude oil prices were near $84 per barrel in early trading on Friday. Crude oil prices have been consistently volatile as investors weigh concerns about a potential economic downturn against indications of a tightening oil market. Added difficulties stem from the robust dollar.

The market is beginning to feel the effects of the impending sanctions on Russia, which will extend to petroleum products beginning early in the new year.

There is still a lack of clarity on demand in China after President Xi Jinping’s assurances on Sunday that Beijing would maintain its Covid Zero policy, despite officials are said to be debating whether to cut quarantine for inbound travelers.


3) Japan’s inflation hits 8-year high as BOJ may keep ultra-low rate

Japan’s inflation accelerated to 3.0% in September, the highest in eight years, amid rising import costs and easy monetary policy by the Bank of Japan.

Core consumer price index (CPI), which excludes fuel and food costs, was in line with the consensus at 3%, but higher than the previous month of 2.8%.

The inflation data underscores the difficulties that the Bank of Japan tries to underpin a weak economy by maintaining ultra-low interest rates amid a global parade of rate hikes, especially the U.S. Federal Serve, resulting in a slide in Japanese yen.

Takeshi Minami, chief economist at Norinchukin Research Institute said that Haruhiko Kuroda, governor of the central bank, may maintain the policy rate for the rest of his term, which will end in April.


4) US looks to extend China tech ban to quantum computing and AI

The U.S. is looking to broaden its China tech ban beyond chips, with the Biden administration reportedly considering additional export controls that would block China’s access to some of the most powerful emerging computer technology, such as quantum computing and artificial intelligence.

People familiar with the matter told Bloomberg that the plans are expected to center on the still-experimental field of quantum computing and artificial intelligence software.

If implemented, the restrictions would follow earlier this month’s announcement of more curbs designed to limit China’s ability to use cutting-edge semiconductors in weapons and surveillance systems.