Kaohoon Morning Brief – 17 May 2023

1) KSS expects weak session after disappointing U.S. economic data and recession fears

Krungsri Securities (KSS) expected Thailand’s SET Index to move weakly between 1,530-1,535 points in concerns of a U.S. recession after weak retail sales data in May with only a 0.4% growth. The uncertainty with the U.S. debt ceiling that could potentially hurt the global economy if it defaults on June 1. KSS recommended ‘Selective Buy’ play and wait to buy on weakness.


2) Foreigners net buy U.S. Treasuries in March at the largest amount in two years

Foreign buyers swarmed US Treasuries in March at the highest amount since June 2021.

Data from the Treasury Department showed on Monday that holdings of U.S. Treasuries rose to $7.573 trillion in March, up around $230 billion from $7.343 trillion in February 2023.

At the country level, the UK was the largest net buyer of long-term U.S. Treasuries in March, while Japan was the largest net seller.


3) Biden and McCarthy still cannot get a deal on debt ceiling

The U.S. President Joe Biden met with the House Speaker Kevin McCarthy on Tuesday to talk on the debt ceiling that could potentially lead to a default in early June.

After the talks, McCarthy told reporters that both of them remained far apart on an agreement to a deal in lifting the debt ceiling. However, he said that it is possible to get a deal by the end of the week, adding that it is not that difficult to get to an agreement.