Kaohoon Morning Brief – 26 June 2023

1) KSS expects weak trading session amid concerns over Fed’s rate hike in July

Krungsri Securities (KSS) expected a weak trading session in the Thai stock market to reach the support level of 1,500-1,490 points in concerns of the Fed raising interest rate to bring inflation down. The CME FedWatch Tool is inclined to a quarter point rate hike for the meeting in July. A rate hike could slow down the U.S. economic growth as PMI services and production sector slowed to 53.0 in June.

Still, the analyst expected the SET Index to bounce back when it reaches an oversold territory.


2) Oil rises higher as uncertain situation in Russia could lead to disruption in supplies

Oil prices edged higher in the morning session on Monday in fear that energy supplies would be disrupted after an uprising of the Wagner Group in Russia, one of the world’s biggest producers.

The international benchmark Brent crude rose $0.36 or 0.49% to $74.21 per barrel. Meanwhile, the West Texas Intermediate (WTI) increased $0.33 or 0.48% to $69.49 a barrel.

However, the situation calmed down on Sunday after Yevgeny Prigozhin, leader of the Wagner group, ordered his troops to turn around.

Kremlin spokesman Dmitry Peskov said the criminal charges against Prigozhin were dropped.


3) US corporate are having more defaults due to Fed’s rate hikes

A series of rate hikes by the U.S. central bank has been putting more pressure on businesses as a number of defaults from companies in the world’s largest economy increased.

According to the data reported by Moody’s Investor Service, there have been 41 defaults in the U.S. and one in Canada since the beginning of this year, which is the most in any region globally and more than double of the number from the same period in 2022.