Kaohoon Morning Brief – 8 May 2023

1) Krungsri Securities

Krungsri Securities expected Thailand’s SET Index to move between 1,525-1,545 points after the Fed raised interest rates by 25bps to 5.25% as expected as well as strong U.S. job market that unemployment rate dropped to 3.4%. However, concerns over the U.S. banking crisis and a selloff to lower the risk could lead to a fluctuation in the stock market. KSS recommended investors for a ‘Selective Buy’ play.


2) BofA says Fed’s rate cuts not likely to be this year

The Bank of America stated that the Federal Reserve may be signalling its willingness to hold interest rates, but saw that it will be quite rare for the central bank to cut rates with inflation remaining at a high level and unemployment at a low level.

The Bank of America stated that rate cuts are not likely to happen in 2023 unless something really big happens. Due to this reason, it is not yet the time to buy equities as outflows pick up pace amid rising inflation and fears of recession.


3) Yellen warns again of catastrophic crisis if the congress fails to raise debt ceiling

Treasury Secretary Janet Yellen once again on Sunday warned that failure to raise the debt ceiling will cause a “steep economic downturn” in the U.S.

She reiterated that the Treasury Department may run out of measures to pay its debt obligations by the beginning of June.

“Our current projection is that in early June, a day will come when we’re unable to pay our bills unless Congress raises the debt ceiling, and it’s something I strongly urge Congress to do,” Yellen told ABC.