Kaohoon Morning Brief – 22 September 2023

1) FSS expects limited upside for SET as Fed’s high interest rates continue to pressure the market

Finansia Syrus Securities (FSS) expected Thailand’s SET Index to move in a sideways trend within the range of 1,505-1,520 points as the recovery in the market is limited, pressured by high bond yield in speculation that Fed’s interest rates could stay at a higher level longer. BOE surprised the market yesterday, but still not closing the door for more hikes as inflation is still high. The analyst expected BOJ to maintain rates at -0.1% today, which was in line with the actual report this morning.


2) Bank of England unexpectedly holds rates unchanged at 5.25%

The Bank of England unexpectedly voted to maintain interest rates of the United Kingdom at 5.25%, compared to 5.5% expected by the market, bringing an end to the longest successive period of rising rates in decades.

It was the first meeting for the BoE without a rate hike since November 2021. The voting was by the narrowest possible margin in 5-4 favour for a hold.


3) US jobless claims fall to lowest level since late January

The number of Americans filing for unemployment benefits fell to the lowest level in eight months last week.

The US jobless claims fell by 20,000 to 201,000 for the week ending September 16, according to the report by the Labor Department Thursday. Last time that the market saw this number was the last week of January.