The US Bureau of Labor Statistics reported that the consumer price index for July rose 3.4% year on year, slowing from 3.5% in June and in line with analyst expectations. This led markets to assess that the Federal Reserve is highly likely to keep interest rates unchanged at its September meeting. Core CPI, which excludes food and energy prices, rose 0.2% month on month and increased 2.5% year on year. The energy category fell 1.5% from the previous month, continuing a 5.7% decline in the prior month, although energy prices were still up 14.7% year on year. Markets lowered the probability of a rate hike in September to about 38% from around 60% before the data release. As a result, yields on 2-year and 10-year US government bonds fell by 2 basis points. Analysts at Krungsri Securities viewed these factors as positive for assets in Asian emerging markets, including the Thai stock market, and recommended standout stocks in the power plant, leasing, and technology sectors, selecting GULF, GPSC, MTC, and KCE as top picks.
Global Power Synergy PCL
Gulf Energy Development Public Company Limited
