Market Roundup 23 January 2023

1) Thai stock market overview

Thailand’s SET Index closed at 1,684.04 points, increased 6.79 points or 0.40% with a trading value of 52 billion baht. The analyst stated that the Thai stock market edged higher with a buying pressure in some banking stocks that have unique catalysts and also Delta Electronics (Thailand) Pcl that moved the market by nearly 3 points. Meanwhile, most of the Asian markets were closed on the Lunar New Year.

The analyst expected SET Index to move in sideways trend tomorrow with a support level at 1,675-1,680 points and a resistance level at 1,695-1,700 points.


2) UK industrial group urges PM to take immediate action to spur growth reforms

On Monday, the head of an employers group said that Britain had fallen behind its peers and urged prime minister Rishi Sunak to take an immediate action to boost the investment, solve a lack of workers problem and avoid chaos over post-Brexit rules.

Tony Danker, Director General at Confederation of British Industry, admired Sunak for unraveling the mini-budget crisis last year, but opined that Britain is not matching with The U.S. and other European countries in terms of growth reforms.

He also said that Britain is behind its peers in green investments in areas such as heat pumps, insulation, building retro-fits, electric vehicle charging infrastructure and carbon capture and storage.


3) Jeff Basoz warns over purchasing non-essential products amid bad economic outlook

Jeff Basoz, Amazon founder and executive chairman, warned about the economy not looking good right now, he told CNN.

“Things are slowing down. You’re seeing layoffs in many, many sectors of the economy,” he said in the interview.

Many companies announced thousands of layoff, and not only big tech like Amazon, Meta and Twitter, but investment banking such as Goldman Sachs as well. Amazon’s founder noted that people might need to tighten their budget. Holding off on purchasing non-essential products such as big-screen tv, refrigerator, new car etc., should remove some risk from the equation.

This time is not a good sign for investors, but not for all businesses, as Basoz expected utilities, healthcare and real estate to perform well even if the economy falls.


4) Hawkish stance of European Central Bank push euro to near nine-month high

Amid further hawkish statements on European interest rates and market pricing for a less aggressive Federal Reserve, the dollar was poised at a fourth straight session of losses against the euro on Monday.

The euro advanced marginally, reaching $1.0870 and drawing closer to its nine-month high of $1.08875.

ECB governing council member Klaas Knot bolstered the euro with his comment that interest rates would increase by 50 basis points in both February and March and continue rising in the months after.

Futures, on the other hand, have priced out nearly any likelihood of a 50 basis point hike by the Fed next month and have steadily dropped the expected peak for rates from the current 4.25% to 4.50% to 4.75% to 5.0%.

With weaker inflation, consumer spending, and housing statistics, investors have priced in approximately 50 basis points of U.S. rate cuts for the second half of the year.