1) Thai stock market overview
Thailand’s SET Index closed at 1,522.12 points, decreased 15.47 points or 1.01% with a trading value of 43 billion baht. The analyst stated that the Thai stock market closed lower in response to a selloff in big-cap stocks and without positive factors to push the market further. Meanwhile, concerns over U.S. rate hikes still weigh on the market. The analyst recommended investors to monitor Powell’s testimony to the Congress.
The analyst also noted that foreign investors continued to withdraw from the Thai market due to uncertainty in political issues.
2) May UK inflation exceeds expectations, putting more pressure on BoE
Inflation in the United Kingdom remained higher than expected for a fourth month in May, data showed on Wednesday, as consumer prices rose, adding more pressure on the Bank of England on monetary policy.
The Office of National Statistics reports that in May, the Consumer Price Index (CPI) grew 8.7% from a year ago, which is the same as the previous month and higher than the 8.4% rise predicted by Reuters. Excluding the effects of food and energy price swings, core inflation increased to 7.1% from 6.8%.
On a monthly basis, headline CPI rose 0.7% month-over-month in May, while core inflation rose 7.1% year-over-year. This is up from 6.8% in April and the highest pace since March 1992.
“Rising prices for air travel, recreational and cultural goods and services, and second-hand cars resulted in the largest upward contributions to the monthly change in both the CPIH and CPI annual rates,” the ONS said.
Though it fell below 10% in April, inflation remains far above the Bank of England’s 2% target and well above consensus projections.
3) Chinese government extends incentives for electric vehicles until 2027
China on Wednesday extended tax breaks for the purchase of electric vehicles until 2027 in an effort to bolster domestic demand as the country faces a decline in sales as a result of the economy’s slowing growth.
In an effort to drive up weakening auto demand, the government has launched a 520 billion yuan ($72.3 billion) program to boost sales of electric vehicles (EVs) and other green autos over the next four years.
According to a statement released by the Ministry of Finance, buyers of new energy vehicles (NEVs) in China will be exempt from paying a purchase tax of up to 30,000 yuan per car in 2024 and 2025, with the amount of the exemption decreasing to 15,000 yuan in 2026 and 2027.
The move is an extension of the current policy that allows NEVs to remain purchase tax free until the end of 2023. NEVs include all-battery EVs, plug-in petrol-electric hybrids, and hydrogen fuel-cell vehicles.
