Market Volatility Ahead of Fed Interest Rate Cut

Mr. Charanwet Saksri, Investment Advisory Director at Classic Ausiris Futures Company Limited, notes that the buying and selling of SET50 Index Futures has been quite volatile. The index initially rose but has since retreated, likely due to selling pressure to reduce risk ahead of the Federal Reserve (Fed) meeting.

The market is eagerly awaiting the Fed meeting, where interest rates are expected to be cut. However, the extent of the cut is uncertain, with possibilities ranging from 0.25% to 0.50%. The market is giving more weight to a 0.50% cut, but the outcome is still unclear.

If the Fed cuts interest rates by 0.50%, the market may not react significantly, as this is within the expected range. However, if the cut is only 0.25%, it could lead to a decline in the index. The resistance levels are at 910-915 points, while the support levels are at 885-890 points.

The gold price is currently moving within a range, awaiting the outcome of the Fed meeting. The market had previously expected a 0.50% interest rate cut, which would have weakened the US dollar and boosted the gold price. However, recent US economic numbers have not shown significant signs of slowing down, which has not provided additional support for the gold price.

The SET50 closed at 904.90 points, up 1.60 points, or -0.18%. The total market outstanding was 605,942, with 3,358,974 total futures. The equity index was 236,340, with 545,102 SET50 Index.

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By Jirayut Chansongsakul/Saowalak Phon