Kaohoon Morning Brief – 2 February 2023

1) FSS expected positive session in Thai market after Fed’s decision inline with polls

Finansia Syrus Securities (FSS) expected the SET Index to move in a positive territory within the range of 1,680-1,695 points following a brighter outlook after the Fed’s rate decision, seeing the rate cycle close to its peak as inflation started to slow down and the economy could avert recession. This led to fund flows into risk assets, especially stocks and bonds. Meanwhile, crude oil prices edged lower after the U.S. reported higher inventories.


2) Fed raised rates by 25bps and signaled for more

The Federal Reserve raised its interest rates by 25 basis points on Wednesday, bringing the benchmark rate to a range of 4.5% to 4.75% from 4.25% to 4.5% previously while signalling to go further in order to bring inflation down to its target.

This quarter-point hike marked the Fed’s second downshift, following a 50bps hike in December and four consecutive 75bps hikes.


3) Meta rose 20% in extended hours after reporting better-than-expected 4Q revenue

Facebook’s parent Meta shares rose 20% to $184 a piece after hours as the company reported fourth-quarter revenue of $32.17 billion that beat expectations for $31.53 billion estimated by Refinitiv.

Revenue in the final quarter of 2022 fell 4% from a year earlier, marking its third straight quarter of declining sales as cost and expenses soared 22% to $25.8 billion.