Krungsri Securities (KSS) expected Thailand’s SET Index to weaken to 1,380-1,375 level on the escalated tension after Israel made an aerial attack on the Gaza strip and prepared to make a ground assault. Rising US PCE data also pressured the market to believe that the Fed will maintain interest rates higher for longer. The analyst recommended investors to buy on weakness in stocks with unique catalysts.
The Fed Fund Rate is now 1.6% above core PCE, the most restrictive monetary policy since 2007, after the Fed’s preferred measure of inflation moved to 3.7% in September, which was the lowest level since May 2021.
Global stocks have lost another $1.5 trillion in market capitalization last week on still-elevated US 10-year yields and on not up-to-expectation earnings results. All stocks are now worth $98.2 trillion, which is less than global GDP.
