Market Roundup 17 November 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,614.95 points, decreased 5.03 points or 0.31% with a trading value of 59 billion baht. The analyst stated that the Thai stock market moved in the same direction as regional markets in negative territory in concerns of the war between Russia and Ukraine, while the Covid situation in China worsened. A selloff in hospital and finance stocks also weighed the Thai market down.


2) War in Ukraine weighs most negativity on world economy, IMF chief says

The war in Ukraine is the “single most important negative factor for the world economy this year and most likely also next year,” Kristalina Georgieva, chief of the International Monetary Fund said on Wednesday in an interview with CNBC.

Georgieva said at the sideline of the G20 meeting, saying that her comment was in response to a missile hitting Poland on Tuesday, which killed two civilians, despite preliminary assessments that suggests the blast came from Ukrainian air defense against Russian attack.

3) Goldman Sachs raises Fed’s terminal rates to 5-5.25%, well over market pricing

Goldman Sachs is adding another 25 basis points to its estimated terminal rate cycle, despite recent momentum in the market that hoped for less aggression from the Federal Reserve after inflation data showed signs of slowing down in October.

The investment bank said that it continues to expect a 50bp hike in December and 25bp hikes in February and March 2023. The firm now added a 25bp hike in May, bringing its terminal fed funds rate to 5-5.25%, compared to 4.75-5% in the previous forecast and a 4.9% peak in market pricing.


4) Japan’s trade deficit widens in October as exports and imports hit records in bad ways

Japan’s trade deficit widened in October, as the country’s imports and exports continued to rocket upward, driven by a historic drop in the yen that has already sent the economy into reverse.

For the fifteenth consecutive month, Japan had a trade deficit in October, after its import bill increased at the fastest pace since 1980.

The massive deficit of 2.16 trillion yen ($15 billion) came despite strong growth in exports, which increased 25.3% year on year to 9 trillion yen ($64 billion) last month. According to the ministry, automobiles, pharmaceuticals, and electrical machinery all contributed to an increase in exports.

Imports totaled 11 trillion yen ($79 billion), up 53.5% from the previous year. Japan is dependent on both energy and food imports during a period of rising global inflationary pressures.