Kaohoon Morning Brief – 1 December 2022

1) FSS expects SET Index to surge amid bullish sentiment as Fed signals slower rate hike

Finansia Syrus Securities (FSS) expected the SET Index to rally and break its short-term resistance at 1,640 points without much difficulty today due to the bullish sentiment. The market sees support after the Fed chair signaled a slower rate hike at the meeting in December. However, it would maintain its tight policy until there were signs that inflation would decrease sharply.

Crude extended its recovery due probably to China’s easing covid restriction outlook. For the OPEC+ meeting on December 4, the market expects it to maintain its daily output cut of 2mn barrels per day in November.

In general, the local factors were bullish. The Charter Court ruled that the organic law on the election of MPs was constitutional. Also, the MPC meeting reflected Thailand’s solid economic recovery, particularly in domestic consumption and tourism. FSS still preferred domestic plays, while fund inflows should continue.


2) Fed signals for smaller rate hikes as soon as December

The Federal Reserve Chairman Jerome Powell on Wednesday sent a signal that smaller interest rate hikes are possible up ahead he sees progress in the combat against rising prices as largely inadequate.

The chairman said that the US central bank is in a good position to reduce the size of rate increases as soon as December.

Wall Street previously expected the Fed to reduce the size of its rate hikes to 50 basis points, its first reduction from a series of 75bps hike so far this year to curb rising inflation.


3) Mark Zuckerberg critisizes Apple’s App Store policies of unfriendliness

Meta CEO Mark Zuckerberg publicly critisezed Apple’s App Store policies at the The New York Times DealBook summit on Wednesday, saying that it was not a suitable place to do business with.

“Apple has sort of singled themselves out as the only company that is trying to control unilaterally what apps get on a device,” Meta’s CEO said. “I don’t think that’s a sustainable or good place to be.”