Kaohoon Morning Brief – 8 June 2023

1) KSS expects concerns over Fed rate hike to weigh on the market

Krungsri Securities (KSS) expected Thailand’s SET Index to move within the range of 1,525-1,540 points. The market could fluctuate as it is looking forward to the FOMC meeting next week with a potential for another rate hike by 25 basis points despite the positive factor from the energy market after oil prices edged higher to $72 a barrel.


2) Canada raises interest rate to 22-year high

After a 5-month pause, the Bank of Canada decided to raise its overnight rate to a 22-year high of 4.75%, which also raised expectations from analysts for another hike next month to contain stubbornly high inflation.

The last time the rate hit 4.75% was in April and May 2001.

The annual inflation rate in Canada increased to 4.4% in April of 2023 from the 19-month low of 4.3% in March, that was well above market expectations of 4.1%.


3) Japan’s 1Q23 growth revised sharply higher

Japan’s economic growth for the first quarter of this year was revised higher to 2.7%, much higher than the previous estimate of 1.6% made last month.

Economists surveyed by Reuters expected a 1.9% growth for the quarter.


4) Thai consumer confidence rose to more than 3-year high

Thai consumer confidence rose to a 39-month high in May, boosted by higher foreign tourist arrivals and increased activity during an election.

The consumer index of the University of the Thai Chamber of Commerce rose to 55.7 in May from 55.0 in April, a survey showed on Thursday.