The Thai stock index on 19 Sept. 65 closed at 1631.57 points, an increase of 1.17 points, with a trading value of 60,159.08 million baht, foreign net sales of 639.42 million baht.

Asia Plus Securities stated that

Stock markets around the world have declined.

under pressure

from US inflation

which remained at a high level

As a result, US Treasury yields rebounded.

The two-year bond is nearing 4% and the dollar continues to strengthen.

As Chinese stocks continue to face pressure from the Chinese government's implementation of zero-covid policy.

As a result, the stock market faces a sell-off in every sector, both New Economy and Old Economy, as the Fed's use of extremely tight monetary policy not only puts pressure on high-value stocks, but also increases the profitability of stocks.

but also raises concerns about an economic recession that will follow

however

The accelerating rate hike is likely to slow for the rest of the year.

Looking at the FED Watch Tool, most investors still weigh 82% that the Fed will raise interest rates 0.75% to 3.25%, and only weight 18% that the FED will raise its 1.00% interest rate for this week's meeting.

The next meeting should see the Fed raise interest rates lower to 0.50%, or 0.25%, considering the recession damage as a cost for the Fed to consider a sharp rate hike.

While Thai interest rates are still rising slower than the US.

along with the economic recovery during the rest of the year

With two more MPC meetings remaining, the research department expects each interest rate hike to be 0.25%, supporting the year-end Thai interest rate to 1.25%, less than the US interest rate the Fed Watch Tool expects at the end of the year at 4%.

Slower Thai interest rate hikes

Partly because the Thai economy is recovering, reflected from the GDP value of 2Q22 has not yet returned to the same level as before the Covid-19 outbreak, unlike the US that had risen above and started to slow down for 2 consecutive quarters while still It is seen that the inflation rate of Thailand in the following months has a clear chance of decreasing.

Asia Plus reiterates that it expects FUND FLOW from developed markets.

Rocked in. The stock market is developing.

Including the Thai stock market, even at the end of the week before the baht depreciated past 37 baht / USD, but Fund Flow out of the Thai stock market is not much, only 819 million baht, and the baht is expected to slow down!!

Index 51