1) FSS expects SET Index to move sideways while economic growth would slowdown from the banking crisis
Finansia Syrus Securities (FSS) expected Thailand’s SET Index to move in a sideways trend within the range of 1,585-1,600 points after a strong surge in the past three days. There are no new driving factors to boost the market, while the market continues to react to the Fed’s rate decision and hope that the cycle is near its peak.
However, the concern should be on the next phase of economic growth that would slow down from the situation in the banking sector, resulting in a more strict measure for loan, while interest rate remains at a higher level.
2) Global central banks set inflation as top priority
Despite concerns on the banking crisis, central banks around the world maintained their sights on containing inflation rather than abruptly halting the rate cycle, indicating that lowering consumer prices is their priority.
This week, the European Central Bank raised the interest rate by 50bps. With the fallout of Credit Suisse partly solved, the Swiss Central Bank moved on the raise rate by 50bps. The Federal Reserve, Bank of England, Australian Central Bank and Norway Central Bank all raised rates by 25bps.
All of these central banks said in the same direction that future rate hikes may be needed.
3) Biden adds 14 Chinese companies to red flag list, China to retaliate
The Biden administration added 14 Chinese companies to a red flag list, saying that U.S. officials were unable to inspect the listed entities.
This would force U.S. exporters to conduct greater due diligence before shipping goods to companies in the list. COM International and HK P&W Industry Co Ltd were among those being included in the list.
Meanwhile, China voiced their opinion, saying that Beijing strongly deplores and firmly opposes these types of moves by the U.S. that try to abuse export control measures.
A spokesperson for the Chinese Embassy in Washington said that China will use state power to suppress and contain foreign companies.
