Kaohoon Morning Brief – 20 December 2022

1) FSS says SET Index lacks positive drivers as recession concerns weigh on the market

Finansia Syrus Securities (FSS) expected the SET Index to move in a sideways trend and rebase as the market lacks positive drivers. A short-term support level remains at 1,610 points and concerns over recession in the U.S. and Europe still weighs the market down as inflation would remain at a higher level and longer than expected, resulting in more tightening policy from the Fed and ECB next year. This would make outflows continue to seek safer assets, seen by rising Dollar Index and bond yields.


2) EU agrees on capping gas price at EUR180

Energy ministers of European Unions finally agreed on a gas price cap after weeks of discussions among the group with split opinion.

Reuters reported that EU officials agreed to trigger a cap on gas prices if exceeding 180 euros ($191) per megawatt hour for three days on the Dutch Title Transfer Facility (TTF) gas hub’s front-month contract.


3) HK to further easing social distancing measures and scrapping banquet limitation

Hong Kong Chief Executive John Lee said that the city will continue to ease its social distancing measures. The chief will visit Beijing from December 21 to 24, saying that he will tell China leaders his desire to reopen the border.

Aside from easing social distancing measures, the city will scrap limits on banquets as well.


4) Oil prices edge higher on weak dollar and high US strategic reserves

Early Tuesday saw oil prices rise further on the back of a weaker dollar and reports that the U.S. will be refilling its Strategic Petroleum Reserve. However, gains were capped by concerns about the impact of increasing Covid-19 cases in China.

Brent crude futures advanced 76 cents, or 0.95%, to $80.56 a barrel at 9.41 A.M. (Thai time).