Market Roundup 8 November 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,632.61 points, increased 9.04 points or 0.56% with a trading value of 63 billion baht. The analyst stated that the Thai stock market closed higher as investors eye Republicans to win the elections, while the overall earnings outlook remains positive. The market was also buoyed by foreign fund flows that could give another push on tomorrow’s session with limited upside if the US midterm elections have unexpected results.


2) Nvidia to sell new chip in China that meets US export controls

U.S. chip maker Nvidia Corp has begun producing a new advanced chip for China that complies with new regulations designed to prevent China from accessing cutting-edge technologies like artificial intelligence (AI).

U.S. new regulations passed in early October effectively barred Chinese chipmakers from exporting advanced microchips and equipment used to manufacture highly developed chips, as part of an effort to hamper China’s semiconductor industry and in turn the military.


3) Trump to announce 2024 presidential campaign on Nov. 15 in Florida

Former US President Donald Trump stated on Tuesday, Nov. 15, that he would make a “major announcement” from Mar-a-Lago, where he is expected to launch his presidential campaign in 2024.

Trump was reportedly considering whether to launch his third presidential campaign on the eve of Election Day, but Republicans were concerned that doing so would energize Democrats while potentially losing independent voters.

Several foreign media outlets have reported that Trump is eager to launch his third presidential campaign, and preparations for campaign infrastructure and staffing have accelerated dramatically in recent weeks, with an early list of top aides apparently having come together.


4) Deflation risks mount in China as Covid curbs weaken demand

Deflation risks are mounting in China as Covid-19 outbreaks and restrictions reduce demand and falling commodity prices put pressure on businesses to lower prices.

Bloomberg said that the producer price index in China likely dipped into deflation in October for the first time in nearly two years, citing its survey of economists head of data due Wednesday.

The index is expected to have fallen 1.6% year on year after rising 0.9% in September. Consumer price growth is also expected to slow to 2.4% from 2.8% in September.

Despite the government’s efforts to boost demand for electric cars and houses, the data surveyed by Bloomberg shows China’s domestic demand has decreased further as movement restrictions to contain Covid-19 outbreaks hamper spending, export demand falls, and home construction continues to collapse.