Kaohoon Morning Brief – 30 May 2024

CGS International Securities (Thailand) expected Thailand’s SET Index to slow down to 1,340-1,365 after the index dropped below the resistance level of 1,350 points due to concerns of internal political issues.

The brokerage firm believed that the current level of 1,350 points could be the opportunity for long-term investment, recommending PTTEP, SPRC, AOT, AMATA, BBL, CRC, MINT and HANA.


European Central Bank (ECB) Governing Council member Klaas Knot suggested that the time to ease monetary policy in the eurozone is approaching. However, Knot emphasized the need for a gradual approach to prevent an upsurge in inflation.

Several ECB policymakers have strongly indicated that the first rate cut in the current cycle could occur at the upcoming June meeting. This sentiment has led to full pricing of this possibility in money markets. A recent Reuters poll of 82 economists revealed unanimous expectations of a rate cut in June.

However, there is uncertainty regarding the future path of monetary policy, particularly due to the persistent services inflation in the eurozone and the complex global economic landscape. Despite being the last among major central banks to initiate interest rate hikes, the ECB is now highly likely to start reducing rates before both the U.S. Federal Reserve and the Bank of England. The latter two institutions have expressed the need for more progress in curbing inflation before considering rate cuts.