Market Roundup 1 November 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,625.73 points, increased 16.97 points or 1.05% with a trading value of 68 billion baht. The analyst stated that the Thai stock market closed higher after a speculation in the afternoon session in hopes of relaxation in Chinese lockdown and reopening. The analyst expected the Fed to raise rates by 0.75bps, which would result in tomorrow’s market movement being limited in a narrow range between 1,620-1,630 points.


2) Credit Suisse to expand in China and Hong Kong, seeing biggest growth markets

Credit Suisse Group AG, the largest bank in Switzerland, is raising new capital for an overhaul, which would come along with an expansion in China and Hong Kong as the bank sees a strong headcount growth in Asia.

The Swiss bank’s turnaround strategy changes from investment banking to less volatile wealth management. An overhaul will see thousands of job cuts.

“If I look at Asia Pacific headcount in the next five years, China and Hong Kong will be the biggest growth markets for us,” Low added. “It’s very clear that the market is bigger in China than it is in Southeast Asia, Australia or India.”


3) Oil up over 1% as weaker dollar outweighs China covid-19 fears

Oil prices gained more than 1% on Tuesday, reversing earlier session losses, as a weaker US dollar offset widening Covid-19 curbs in China, which have spurred concerns about declining fuel demand in the world’s second-largest oil importer.

As of 15.50 hrs. (Thai time), Brent crude for January delivery rose US$1.45, or 1.56%, to US$94.26 a barrel. The December contract expired on Monday at US$94.83 a barrel, down 1%.

U.S. West Texas Intermediate (WTI) crude added US$1.28, or 1.48%, to $87.81 a barrel, after falling 1.6% in the previous session.


4) ECB chief says rates must rise despite increasing recession risks

The head of the European Central Bank said on Tuesday that the bank must continue raising interest rates to combat inflation, even though the risk of a eurozone recession has increased.

Last month, the central bank raised the interest rate by 75 basis points to 1.5%, the highest level since 2009. The European Central Bank has raised interest rates by a total of 200 basis points in the last three sessions; earlier, the bank had kept rates below 0% for eight years.

“Our mandate is price stability and we have to deliver on that using all the tools we have available,” said ECB President Christine Lagarde. “We are determined to do what is necessary to bring inflation back to our 2% target,” she added.

“The destination is clear, and we are not there yet,” Lagarde said without specifying where rate hikes might end. “We will have further rate increases in the future.”