1) FSS expects SET Index to move sideways up but with low trading volume
Finansia Syrus Securities (FSS) expected Thailand’s SET Index to move sideways to sideways up to test the resistance level of 1,600-1,610 points. However, the trading volume would be low due to the long holiday starting tomorrow and the market is looking ahead to the U.S. inflation that will be announced tonight.
Meanwhile, the IMF slightly cut global economic growth this year to 2.8%, but still larger than the World Bank’s expectations of 1.7%.
2) IMF cuts global economic growth to 2.8%
IMF cuts global GDP forecasts to 2.8% vs 2.9% in January, saying that the global economy is heading toward the weakest growth since 1990. The IMF also eyed 3% growth next year.
The latest forecast is the IMF’s baseline assuming that the recent financial sector stresses are contained.
IMF expects global headline inflation to drop from 8.7% in 2022 to 7% this year, as energy prices cool down. The IMF does not expect headline inflation to return to its target levels before 2025.
3) Paul McCulley expects Fed’s rate hikes to end in May
Former PIMCO chief economist Paul McCulley says that the market is wrong about the Federal Reserve’s path to policy rates and predicts that rate hikes will end in May, indicating that mounting economic pressures will convince the central bank to stop hiking rates next month.
The former chief economist told CNBC that there will be a pause next month and pivot later this year.
