Kaohoon Morning Brief – 21 December 2022

1) KSS expects gloomy trading sentiment over BOJ’s moves and recession concerns

Krungsri Securities expected SET Index to move between 1,595-1,615 points. The adjustment in yield curve control of the Bank of Japan by widening the range around the band from its present plus and minus 0.25 percentage points to plus and minus 0.5 percentage points. Concerns over recession from a series of interest rate hikes from global central banks still weigh sentiment in the market down.

The firm expected buying pressure in stocks with unique catalysts and window dressing at the end of the year should push the SET Index to bounce back.


2) JPMorgan says BOJ’s move indicates upcoming pivot in monetary policy

JPMorgan wrote in a note stating that the Bank of Japan’s announcement in changing yield-curve control policy came as a surprise as the market expected for no change in policy at this meeting. JPMorgan viewed that the move indicated that new governor and deputy governors who are to take over next spring could bring a pivot in the BOJ’s monetary policy framework and conduct.


3) The U.S. Senate on Tuesday voted 70-25 to proceed with the $1.66 trillion government spending bill to fund the government throughout the end of its fiscal year on September 30, 2023. The bills were higher than the $1.5 trillion approved in the last fiscal year.

The agreement from Democrat and Republican on Tuesday was the first step toward the final bills, which will be sent to the Democratic President Joe Biden for signing by the end of the week.


4) Musk to step down from Twitter’s CEO after finding replacement

Elon Musk confirmed he will step down as chief executive of Twitter when he finds a replacement.

The CEO of the social media platform asked Twitter in a poll if he should step down from the position in which the community agreed on letting other executives taking Musk’s place.

“I will resign as CEO as soon as I find someone foolish enough to take the job! After that, I will just run the software & servers teams,” Musk wrote on Twitter.