Thailand’s SET Index closed at 1,297.01 points, decreased 9.68 points or 0.74%, with a trading value of THB 44.92 billion. The analyst stated that the Thai market moved relatively flat due to “Sell on Fact” activity after the Federal Reserve cut interest rates as expected. However, the Fed Chair Jerome Powell signals a slightly lesser-than-expected dovish outlook on monetary policy.
Furthermore, the lack of new supporting factors pushed the SET Index below 1,300 points.
The analyst expects the Thai market to trade sideways tomorrow.
The Federal Reserve, facing heightened concerns over softening employment conditions, reduced its benchmark interest rate by 25 basis points on Wednesday — the first such move since December. The central bank signaled its readiness for additional monetary easing, aiming to stave off further deterioration in a labor market marked by rising Black unemployment, shrinking workweeks, and other fragile indicators.
The Hong Kong Monetary Authority (HKMA) cut its base interest rate by 25 basis points to 4.5% on Thursday, marking its first easing since December and mirroring a reduction by the U.S. Federal Reserve.
China’s central bank maintained a key interest rate on Thursday, opting to keep monetary policy stable even after the U.S. Federal Reserve moved to cut rates just hours earlier.
Market analysts said continuing robust exports and a sharp rally in Chinese equities have given policymakers confidence to defer additional easing, despite an ongoing slowdown in broader economic activity.
