Kaohoon Morning Brief – 25 September 2023

1) FSS sees persisting concerns in the market as Fed could maintain rates for longer

Finansia Syrus Securities (FSS) expected Thailand’s SET Index to move within the range between 1,515-1,530 points as global markets are still concerned about the Fed’s rate policy that was expected to stay for longer, which would pressure risk assets to have a limited recovery.

The domestic factors could have a positive catalyst from the cabinet meeting this week on the debt postponement. There should be more clarity on the funding source for the government’s THB 10,000 digital handout that should ease some concerns in the market.


2) Dollar Index is on 10-week winning streak

The Dollar Index is on its second longest-winning streak of 10 weeks as hedge funds have again turned net bullish on the US Dollar in anticipation that the central bank will keep interest rates at a higher level for longer.

The Dollar Index, which is a basket measuring the U.S. dollars (USD) strength against a basket of six influential currencies, including the Euro and Pound, just had a 10-week winning streak last Friday. In the last 45 years, there was only one occasion that the index recorded a gain for 10 weeks straight, which was in 2014.

Another positive week will make a new record for the index.


3) China Evergrande decreases 24% after the announcement of not being able to meet the qualifications for issuing new bonds

China Evergrande fell 24% on Monday as the group published a statement saying that the company was unable to meet the qualifications for issuing new bonds in the current circumstances and reassessing the restructuring plan.

The Hang Seng Index fell 1.41% to 17,803.58 points in the morning session.