Kaohoon Morning Brief – 10 January 2023

1) FSS expects SET Index to slow down after a leap yesterday

Finansia Syrus Securities (FSS) expected Thailand’s SET Index to move in a sideways trend, slowing down from the surge yesterday with a resistance level at 1,700 points. The analyst responded positively on the China reopening and hopes for Fed slowing down its rate hikes to 25bps. Still, some of the Fed’s presidents noted that the cycle could go above 5%.


2) Short-term inflation expectations edge lower

The New York Fed’s survey of 1-year-ahead inflation expectations continued to decline in December, dropping 0.2 percentage points to 5.0%, its lowest level since July 2021. Meanwhile, the 3-year-ahead inflation expectations remained unchanged at 3.0%, and inflation expectations for five years ahead rose by 0.1 percentage point to 2.4%.

The drop in short-term inflation expectations is a positive sign for the equity market as the Federal Reserve could slow down its pace on hiking interest rates.

Fed Chair Jerome Powell is scheduled to speak on Tuesday on the subject of central bank independence at a bank symposium in Sweden.


3) Goldman Sachs is ready to layoff more than 3,000 employees

Goldman Sachs is ready to go with the biggest layoff since the financial crisis in 2008. Reuters reported that it could begin as soon as this Wednesday, citing two sources close to the matter.

More than 3,000 employees will be let go, according to the source, but the final number is yet to be determined.

Earlier, Bloomberg reported that 3,200 employees could be let go.

Goldman had 49,100 employees at the end of the third quarter 2022.