Thailand’s SET Index closed at 1,363.25 points, decreased 4.70 points or 0.34% with a trading value of 48.88 billion baht. The analyst stated that the Thai stock market traded narrowly and was in line with the regional markets after the US Federal Reserve announced its decision to hold interest rates without any signs of rate hike. Bond yields and the US dollar slowed down their gains, which resulted in the market not reacting in a negative way during the session. As for the announcement of 1Q24 earnings reports from listed companies, some stock categories, such as ICT stocks, performed better than expected and helped stabilize the market, while food exporting stocks benefited from the weakening baht.
The analyst expected the market to trade sideways tomorrow.
Federal Reserve Chair Jerome Powell indicated that the central bank’s upcoming move is unlikely to involve a rate hike. This statement led to a surge in the three major stock indexes, with the Dow rising over 500 points at its peak during the trading session. Following their May meeting, Federal Reserve policymakers maintained interest rates within the range of 5.25% to 5.5%.
Concerns arose after last week’s GDP report revealed a slowdown in overall growth coupled with steady price increases, sparking fears of potential “stagflation” in the U.S. However, Powell dismissed this notion on Wednesday, stating, “I don’t really understand where that’s coming from.” He emphasized that economic growth sits around 3% and inflation remains below 3%, refuting claims of stagflation.
Powell reiterated that a rate hike at the June meeting is off the table unless there is compelling evidence showing that current policies are not adequately curbing inflation towards the 2% target. The Federal Reserve is looking for increased confidence in inflation decreasing towards 2%, a goal that has not been met yet, according to Powell.
Highlighting that the Fed will remain patient until inflation shows a significant shift, Powell underscored a need for a stronger data-backed assurance before considering any changes to the current federal funds rate target. Powell also emphasized the central bank’s vigilance towards the job market’s resilience in the midst of tightening monetary policies.
Satya Nadella, CEO of Microsoft, announced the data center investment in Thailand, while there was no indication on the amount of investment capital.
Prior to the said announcement, the company had also announced its investment in the Republic of Indonesia, with an investment capital of $1.7 billion.
The investment was said to include Azure services and AI infrastructure. The capital expenditure for a data center was commonly around $7-14 million per megawatt, with 25-30% of it being a power system.
