Market Roundup 24 March 2023

1) Thai stock market overview

Thailand’s SET Index closed at 1,591.85 points, decreased 1.80 points or 0.11% with a trading value of 44 billion baht. The analyst stated that the market lacked positive drivers and the index could not break the resistance level of 1,600 points.

Meanwhile, the Thai bank has less and limited exposure to the ongoing banking crisis, and also has a strong foreign reserve.


2) U.S. Treasury Secretary Yellen vows urgent actions to safeguard deposits

U.S. Treasury Secretary Janet Yellen said Thursday that the federal emergency actions to protect Silicon Valley Bank and Signature Bank depositors could be implemented again, if necessary, as she sought to calm investors’ nerves amid mounting market fears over deposit outflows.

Yellen’s testimony was given as market concerns over the federal government’s commitment to backstop small and medium-sized regional banks increased following the SVB collapse, with questions centering on whether the federal government is prepared to backstop these financial institutions in the event of a run.


3) Markets bet interest rate upcycle to end soon

After weeks of financial turbulence, the world’s top central banks have signaled a shift away from monetary tightening policy, bringing an end to the interest rate upcycle that began a year ago in a bid to tame record inflation.

Following the latest action, the Fed signaled it was close to pausing rate upcycle, while the ECB stated it would no longer provide direction and instead decide at each meeting. As for the BoE, the central bank said it expected the increase in inflation to moderate faster than previously projected.