Kaohoon Morning Brief – 10 July 2023

1) FSS expects Thai bourse to move around 1,500pts as the market eyes upcoming political event

Finansia Syrus Securities (FSS) expected Thailand’s SET Index to move in a sideways trend around 1,500 pts as the market is monitoring the political event in Thailand this Thursday as the parliament will vote to choose the prime minister. FSS expected the energy sector to support the market in short-term after crude oil prices spiked last Friday. Still, the overall outlook remains limited. The firm recommended stocks that have high anticipation of strong 2Q23 earnings and 2H23 outlook.


2) China’s producer prices continue to fall amid weak demand and concerns of deflation

China’s consumer prices index dropped to zero in June, while factory-gate prices fell further, showing sustained weakness in demand and raising concerns over the threat of deflation to the economy.

The National Bureau of Statistics of China reported on Monday that the country’s producer price index decreased by 5.4% year over year, which was more than analysts had predicted.

Meanwhile, consumer prices held steady on a yearly basis, which was in line with projections, while the month-on-month reading fell 0.2%.

Core inflation, which excludes volatile food and energy costs, declined from 0.6% to 0.4%.

The figures increase evidence that the recovery of the world’s second largest economy is slowing.


3) US Yellen says her 4-day visit in China was productive

U.S. Treasury Secretary Janet Yellen said that she had a ‘productive’ meeting with Chinese officials as she wrapped up her four-day visit in Beijing, while adding that this meeting was a step forward in helping to set relations between the U.S. and China on a surer footing.

“We believe that the world is big enough for both of our countries to thrive,” said Yellen in a statement.

In a press conference published by the U.S. Department of the Treasury, Yellen noted that she told Chinese counterparts that any restrictions on U.S. outbound investments would be transparent and very narrowly targeted.