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Shares retreat as rate-cut bets weaken

RECAP: Asian stocks retreated on Friday, tracking tech-led declines on Wall Street after hotter-than-expected US inflation weakened the case for imminent interest rate cuts by the Federal Reserve.

Thai shares moved in a range of 1,374.69 and 1,395.88 points this week, before closing yesterday at 1,386.04 points, unchanged from the previous week, with daily turnover averaging 45.05 billion baht.

Foreign investors were net buyers of 2.17 billion baht. Institutional investors were net sellers of 1.79 billion baht, followed by retail investors at 208.65 million and brokerage firms at 178.26 million.

NEWSMAKERS: The US producer price index rose 1.6% year-on-year in February from a year earlier, the largest advance since September, signalling persistent inflation. The consumer price index also recorded an unexpected uptick to 3.2%, from 3.1% in January. The data raised concerns that the Fed may delay plans to start cutting interest rates.

COMING UP: The euro zone will report updated inflation and trade data on Monday, and Japan will reports monthly industrial production. On Tuesday, the Bank of Japan and Reserve Bank of Australia will hold policy meetings and the People's Bank of China will announce its loan prime rate. On Wednesday the US Federal Reserve will release its rate decision and outlook. Due the same day are UK consumer and producer prices and New Zealand GDP.

STOCKS TO WATCH: Yuanta Securities expects the SET index will respond positively to final consideration of the fiscal 2024 budget in the House and Senate this month, with disbursements expected to be accelerated shortly to stimulate economic growth. That will boost construction, building materials, banks, power plants, communications, retail and finance stocks.

TECHNICAL VIEW: DBS Vickers Securities sees support at 1,360 points and resistance at 1,405. InnovestX Securities sees support at 1,380 and resistance at 1,410.


This article was downloaded by calibre from https://www.bangkokpost.com/business/investment/2759543/shares-retreat-as-rate-cut-bets-weaken


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