Thailand’s SET Index closed at 1,370.34 points, decreased 10.49 points or 0.76% with a trading value of 33.63 billion baht. The analyst stated that the Thai stock market slumped at the end of the trading session, caused by the volatility in the SET50 H series futures which rollovered to the M series as well as the pressure from the weakening baht which sent negative effects to the fund flow from foreign investors.
The analyst expected the market to rebound tomorrow, as it could face a potential window dressing at the end of the first quarter of 2024 while investors also awaited the announcement of PCE figures from the US.
Fed Governor Christopher Waller stated in a speech at the Economic Club of New York that recent disappointing inflation data supports the decision for the U.S. Federal Reserve to maintain its current short-term interest rate target for now. Despite this, Waller did not dismiss the possibility of reducing rates later in the year if inflation continues to decrease. He emphasized that there is no urgency to cut rates immediately and that it may be beneficial to keep the rate at its current level to ensure inflation stays on a path towards the targeted 2%.
Waller acknowledged that rate cuts are still a possibility, especially if there is further progress in lowering inflation. He mentioned that it might take a few more months of declining inflation to build confidence for rate cuts. However, he highlighted that the strong economy allows the Fed to assess the situation and consider the timing of any rate adjustments.
The delay in implementing rate cuts could impact the number and timing of rate cuts this year, according to Waller. He suggested that adjusting the frequency or timing of rate cuts in response to the latest data would be appropriate. Waller’s comments came after the recent Fed policy meeting where officials decided to maintain the current policy rate and reaffirmed expectations of three rate cuts in 2023 to combat inflation.
On Thursday, a US-based research firm, China Beige Book, released its business survey, demonstrating the anticipation for 1Q24 China’s economy to end on a strong note.
According to China’s official data, retail sales, industrial production, and fixed asset investment for January and February showed a better-than-expected performance, as they were supported by the week-long Lunar New Year holiday.
Shehzad H. Qazi, chief operating officer at the China Beige Book, stated that China’s economy clearly improved in March from better industrial activity and stronger retail spending.
The survey data compiled economic views from 1,436 businesses between March 1 and 23 indicated that the world’s second largest economy poised a solid end to Q1 from larger revenue growth in March compared to February while pricing gains boosted margins.
Meanwhile, the National Bureau of Statistics is scheduled to release 1Q24 economic data on April 16.
