1) Thai stock market overview
Thailand’s SET Index closed at 1,585.08 points, increased 7.90 points or 0.50% with a trading value of 51 billion baht. The analyst stated that the Thai stock market started to relax from concerns of the U.S. banking system. Meanwhile, the energy sector also supported the market after oil prices edged higher as well as tourism stocks.
The analyst recommended investors to monitor the Fed’s decision on policy rate later tonight that if it is a 25bp hike, the market could respond positively.
2) British inflation unexpectedly surges to 10.4% in February
U.K. inflation unexpectedly picked up for the first time in four months in February, putting further pressure on the Bank of England to raise interest rates at its meeting this coming Thursday.
The Office of National Statistics said on Wednesday that rising energy prices continued to pressure household budgets, leading to a rise in the consumer price index (CPI) to 10.4% in the 12 months through February from 10.1% in January.
Reuters polled economists predicted the annual rate of inflation would fall to 9.9% in February, down from October’s 41-year high of 11.1% but still eating into the purchasing power of workers whose wages are increasing at a slower rate.
The Bank of England will meet on Thursday (23 March) to consider whether to increase interest rates.
3) Rakuten spins off banking unit to trade in Tokyo Stock Exchange in April
The Tokyo Stock Exchange has approved the listing of Rakuten Bank Ltd this afternoon.
The listing date is scheduled for April 21, 2023 (Friday). From that date onwards, Rakuten Bank shares will be available for purchase and sale on this exchange.
4) Gold prices to reach $2,600 as Fed pivots on rate decision
Gold prices could surge as high as $2,600 an ounce amid the ongoing global financial turmoil and the momentum of the U.S. Federal Reserve rendering interest rate decision.
Tina Teng from financial services company CMC Markets stated that the next upward trend in gold prices will come when the Fed pivots on rate hikes, which would pressure the greenback and bond yields. She expected the price of this safe asset to trade between $2,500 to $2,600 an ounce.
Meanwhile, CEO Randy Smallwood of Wheaton Precious Metals said that the central bank continuing to buy gold bodes well for long-term prices.
Fitch Solutions predicted that gold would notch a high of $2,075 in the coming weeks and would remain elevated in the coming years.
