Market Roundup 2 February 2023

1) Thai stock market overview

Thailand’s SET Index closed at 1,682.58 points, decreased 3.17 points or 0.19% with a trading value of 62 billion baht. The analyst noted that the Thai stock market moved narrowly as investors digested Fed’s statement after delivered 25bps rate hike, which was in line with market’s expectations, coupled with a selloff in power generation stocks that pressured the market.

The analyst expected SET Index tomorrow to move in a sideways trend looking for new positive factors.


2) BOJ Deputy Governor says absolutely no change in ultra-easy policy commitment

On Thursday, Bank of Japan (BOJ) Deputy Governor Masazumi Wakatabe reiterated the central bank’s commitment to its ultra-loose monetary policy, saying, “absolutely no change.”

Wakatabe stated that a growing number of companies were rising prices and becoming more eager to raise wages, and that the outcome of yearly wage discussions between companies and unions would be among the important elements the BOJ would monitor.

However, Wakatabe expressed doubt that such changes in the inflation outlook would be sustained and enable Japan to achieve the central bank’s 2% inflation objective in a sustainable manner.


3) Dollar Index drops to 9-month low as Fed lowers aggression on policy rates

The decline of the U.S. Dollar Index continued on Thursday after the Federal Reserve announced a smaller interest rate hike as inflation shows signs of slowing down.

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.

The dollar index slipped further by 0.22% on Thursday to 100.91, falling 13% from its previous height of 114.103 in late September 2022. This is the lowest level since April 2022.


4) German exports drop more than expect in December to 6.3%

Germany’s exports fell more than expected in December, impacted by high inflation and uncertainties in the market that continued to pressure Europe’s biggest economy, although supply chain problems eased.

Exports dropped by 6.3% last month, according to data from the federal statistics office, while the Reuters poll forecast a decline of 3.3%. Imports dropped by 6.1%, while it had been predicted to drop by 0.8%.

All year round in 2022, exports ramped up by 14.3% from last year. Imports largely increased by 24.3%, boosted by increased energy prices caused by Ukraine’s war. This resulted in Germany’s export surplus falling for the fifth consecutive year in 2022, as reported by the statistics office.