Thailand’s SET Index fell 0.26% due to profit-taking in key sectors and bond yield rebound. Minimum wage hike delayed; China’s PBOC cut short-term rates. India rejects RCEP. U.S. proposes banning Chinese tech in autonomous vehicles.
Thai Stock Market and Vayupak Fund
Thailand’s SET Index closed at 1,447.90 points, down by 3.79 points or 0.26%, with a trading value of 50.67 billion baht. An analyst attributed the decline to profit-taking in communication, power plant, and finance stocks, influenced by the Vayupak Fund’s positive trend and the Fed’s interest rates downward trajectory, alongside the rebound of the 10-year bond yield.
Investors are keenly observing Vayupak Fund inflows anticipated in early October, with expectations of sideways trading and limited downside risk tomorrow.
Wage Hike, China’s Rate Cut, and Global Trade Updates
Thailand delayed its minimum wage increase to 400 baht per day by two weeks due to quorum issues in committee meetings. Meanwhile, the People’s Bank of China continued its rate cuts by reducing the 14-day reverse repurchase rate to 1.85% and infusing 74.5 billion yuan into the banking system before the National Day Holiday. India’s Commerce Minister Piyush Goyal stated that India will not join the RCEP, citing national interest. In the U.S., a proposal banning Chinese software in vehicles due to security concerns is expected.
Global Market Roundup 23 September 2024
The financial landscape on September 23, 2024, presented a mixed bag of developments, reflecting the dynamic nature of global markets. The Federal Reserve’s decision to cut interest rates marked a significant shift in monetary policy, the first of its kind since the pandemic’s onset. This move is aimed at reducing the economic drag from higher borrowing costs, with expectations set for interest rates to reach a ‘neutral’ rate by late 2025.
Stocks showed a varied response, with the Morningstar US Market Index rising by 1.52%, indicating a push into overvalued territory. Energy stocks, alongside other economically sensitive sectors such as materials, financials, and industrials, led the gains. In contrast, defensive sectors like consumer defensive stocks and healthcare experienced a decline.
The bond market witnessed an interesting turn as US Treasury yields rose, while credit spreads on higher-risk bonds fell sharply, suggesting a growing tolerance for risk among investors. However, this also points to a potential undervaluation of government bonds as diversifying assets in portfolios.
In currency markets, the US dollar continued its descent, now 11% below its peak in September 2022. Despite this decline, the dollar remains relatively expensive compared to other currencies, which could bode well for overseas investments if the trend towards fair value continues.
On Wall Street, the Dow Jones Industrial Average saw a modest gain, while the Nasdaq Composite and the S&P 500 closed in the red. The mixed signals from Fed officials regarding the upcoming November meeting have kept investors on edge, balancing expectations with the reality of ongoing inflation concerns.
As we navigate through these complex financial times, it’s clear that the markets remain as unpredictable as ever. Investors are advised to stay informed and consider the broader economic indicators before making any significant decisions. For a more detailed analysis and insights into the market trends, you can refer to the full reports provided by Morningstar and Nasdaq.
For those looking to stay ahead of the curve, keeping an eye on these weekly market roundups can provide valuable context to the ever-evolving financial narrative.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 38.17 points, or 0.1%, to close at 42,063.36. Eighteen components of the 30-stock index ended in positive territory, while 12 ended in negative.
The tech-heavy Nasdaq Composite lost 65.66 points, or 0.4%, to close at 17,948.32.
The S&P 500 declined 11.09 points, or 0.2%, to close at 5,702.55. Eight of the 11 broad sectors of the benchmark index closed in the red. The Materials Select Sector SPDR (XLB), the Industrials Select Sector SPDR (XLI) and the Technology Select Sector SPDR (XLK) decreased 0.7%, 0.7% and 0.5%, respectively, while the Utilities Select Sector SPDR (XLU) advanced 2.6%.
The fear-gauge CBOE Volatility Index (VIX) decreased 1.1% to 16.15. A total of 20 billion shares were traded on Friday, higher than the last 20-session average of 11.5 billion. Decliners outnumbered advancers by a 1.66-to-1 ratio on the NYSE and by a 1.87-to-1 ratio on the Nasdaq.
: Morningstar Weekly Market Roundup – September 23
: Stock Market News for Sep 23, 2024 – Nasdaq
