Kaohoon Morning Brief – 27 July 2023

1) FSS expects quiet trading session in Thailand prior to a long holiday

Finansia Syrus Securities (FSS) expected the Thai stock market to continue moving in a sideways trend within the range of 1,520-1,530 points on the last trading day before the long holiday. The Fed’s decision was inline with market’s expectations with a 25bps rate hike. Meanwhile, the chairman also opened for another hike in September, judging by the economic data in the next two months. The analyst expected the ECB to raise the rate by 25bps today to 3.75%.


2) US Fed raises rate by 25bps, not closing the door for another hike in September

The U.S. Federal Reserve on Wednesday decided to raise its interest rate by another 25 basis points to the highest level in 22 years.

The widely anticipated move has brought the U.S. central bank’s benchmark rate to 5.25%-5.5%, the highest level since early 2001, while the market is looking for any signals in hope that this could be the final hike in this cycle. 

Fed’s Chairman Jerome Powell said there is a long way to go to reach the inflation target of 2% despite data, which showed that prices had been moderating since the middle of last year.

“I would say it’s certainly possible that we will raise funds again at the September meeting if the data warranted,” said Powell at the news conference. 


3) Meta reported better-than-expected 2Q23 results

Facebook’s parent Meta reported higher-than-expected earnings and revenue for the second quarter.

Revenue increased 11% from a year earlier to $32 billion and also topped 31.12 billion expected by Refinitiv. Earnings were $2.98 per share in the second quarter, compared to $2.91 expected. 

Daily Active Users (DAUs), Monthly Active Users (MAUs) and Average Revenue per User (ARPU) also topped expectations. 

In its guidance, Meta forecast third-quarter revenue of $32 billion to $34.5 billion, which is higher than $31.3 billion expected by analysts.