Kaohoon Morning Brief – 26 October 2022

1) FSS says market recovering on ebbing Dollar Index and US bonds yields

Finansia Syrus Securities (FSS) expected the SET Index to move sideways-to-sideways-up after hovering above the 1,600 level. Also, it should benefit from continued fund inflows into equities and futures. According to the latest data, the Dollar Index and U.S. bond yields continued ebbing due to the market optimism that the Fed would slow its rate rallies in the future. At this point, the consensus expects the Fed’s policy rate to peak at 4.75-5% early next year.

Generally, the market does not have any fresh catalyst to provide support. Its focus is still on domestic economic recovery. In particular, consumption and tourism are about to enter their high season. Besides, the market is entering a period of preview and release of the real sector’s 3Q22 earnings results. It will affect the price of each stock.

FSS still preferred domestic and reopening plays in 4Q22-2023 and believe they will outperform the market.


2) Japan’s former vice minister of finance expects yen to plunge further to 170 against dollars

Japan’s former vice minister of finance for international affairs said that the Japanese yen could fall further to 170 level against the U.S. greenback next year.

“Most of the business people are now expecting further depreciation of the yen. 170 is well in the scope,” Eisuke Sakakibara told CNBC.

Authorities in Japan reportedly intervened in the currency market on Friday after the Japanese yen fell to 150 per dollar, a key psychological milestone, and reached levels not seen since August 1990.


3) Alphabet’s 3Q22 earnings and revenue missed expectations

Shares of Alphabet fell 6.5% after market hours on Tuesday after the announcement of its 3Q22 earnings and revenue that missed expectations.

Earnings per share (EPS) was $1.06 vs. $1.25 expected, according to Refinitiv estimates. Meanwhile, revenue was $69.09 billion vs. $70.58 billion expected.

The company said that it would lower headcount growth in the fourth quarter as it would focus on moderating operating expense growth.