Thailand’s SET Index closed at 1,332.74 points, increased 4.33 points or 0.33% with a trading value of 40.26 billion baht. The analyst stated that the Thai stock market traded narrowly sideways as investors awaited the announcement of the nonfarm payrolls from the US coming tonight. The market was pressured by the selloff of big-cap stocks, caused by political concerns, while also receiving purchasing power from ICT stocks.
The analyst expected the market to potentially continue decreasing next week and recommended investors to pay attention to the FOMC meeting on 11-12 June and the case consideration from the Constitutional Court concerning political issues.
The markets see two more rate cuts from the ECB this year, following a first rate cut in nearly five years from the committee on Thursday. It is expected that the cut would be in September and December.
The European Central Bank (ECB) yesterday confirmed the widely-anticipated reduction in interest rates during its meeting, despite the presence of inflationary pressures within the 20-nation euro zone. This move lowered the central bank’s key rate to 3.75%, decreasing from the record level of 4% maintained since September 2023.
China’s exports for May exceeded expectations by growing 7.6% year-on-year in U.S. dollar terms, surpassing the predicted 6% growth from a Reuters poll. However, imports only saw a 1.8% increase during the same period, missing the forecasted 4.2% growth.
In April, China experienced a 1.5% year-on-year growth in exports, while imports surged by 8.4%. Despite trade tensions with the U.S., China’s exports have remained resilient, providing support for the country’s overall economic growth.
Bank of America’s May US CPI Inflation Preview Report suggests that the Consumer Price Index (CPI) is expected to remain stable at levels considered somewhat elevated. The forecast indicates that the headline CPI is projected to increase by 0.1% month-on-month (unrounded at 0.13%), with a year-on-year rate of 3.4% and a headline NSA index of 314.476. Additionally, core CPI is anticipated to rise by 0.3% month-on-month (unrounded at 0.30%), keeping the year-on-year rate unchanged at 3.6%. While this forecast isn’t alarming, it may not be particularly reassuring for the Federal Reserve either.
The Trade Policy and Strategy Office (TPSO), Ministry of Commerce, revealed on Friday that Thailand’s consumer price index (CPI) or inflation figures for May rose by 1.54% YoY to 108.84.
The rise was mainly from a temporary factor, a low base of last year’s electricity prices, and an increase in energy prices (gasoline), as well as a surge in fresh food, vegetable, and egg prices.
The average CPI for the first five months of 2024 (Jan-May) was at a negative 0.13%.
Core CPI for May increased by 0.39% YoY to 104.74, while the average figure for the first five months edged up by 0.42%.
The Reserve Bank of India (RBI) opted to maintain its key interest rate unchanged on Friday, aligning with market expectations given the backdrop of sustained economic growth and a concerted effort to steer inflation towards the medium-term goal of 4%.
The Monetary Policy Committee (MPC), comprising three RBI officials and three external members, upheld the repo rate at 6.50% for the eighth consecutive policy meeting. A Reuters survey of 72 economists revealed a consensus that the MPC would retain the repo rate at 6.50%, with many experts viewing this rate as the pinnacle of the ongoing monetary cycle.
