Local issue
Exports rise for a second straight month in March. State maintains growth target. Commerce Ministry reported exports in Mar rose 1.3% YoY to US$19.125bn, boosted by industrial goods such as automobiles, machinery, and gold. Imports were at US$16.159bn, resulting in a trade surplus of US$2.966bn in the month. Shipments to all major markets fell, including the US and China, but exports to Southeast Asian countries and Australia rose. For the three-month period, Thailand shipped a total of US$53.829bn, up 0.9% YoY with a trade surplus of US$8.189bn The government is keeping its fullyear export growth target at 5% as it becomes more confident in the country’s shipments. (Bangkok Post)
Thailand needs TPP upgrade. With encouragement to see Thailand joining the Trans-Pacific Partnership (TPP), the United States has suggested that Thailand adjust and modernize its rules and regulations on trade, investment and intellectual-property rights if it wants to join the TPP, after Commerce Minister Apiradi Tantraporn visited Washington, D.C. for the Trade and Investment Framework Agreement. (The Nation)
First homes to be exempt from tax as the Finance Ministry seeks to gain additional land & buildings tax income mainly from commercial property. However, expensive residential property priced at more than Bt50mn cannot avoid being taxed, according to what Deputy Prime Minister Somkid Jatusripitak previously told the media. The new tax law, which is expected to increase the country's tax income by Bt30-40bn a year, will seek cabinet approval soon and take effect next year. (Bangkok Post)
Rice to be sold within 60 days. Starting next week, the government plans to sell all 11.4mn tons of rice in its stockpiles, worth a total of Bt100bn, within two months in a bid to reduce stocks leftover from Yingluck-era rice-purchase scheme. This plan was unprecedented as such an amount is greater than the amount the country usually sells in a year. (Bangkok Post)
Global issues
The US dollar slipped against the yen on Monday as traders took profits from the greenback's recent rally against the Japanese currency, while the dollar weakened against other major currencies ahead of a Federal Reserve meeting. The dollar hit a session low of ¥110.85 after reaching a more than three-week high of ¥111.90. The euro rebounded against the dollar, hitting a session high of US$1.1267 after hitting a nearly four-week low of US$1.1213 earlier Monday. (Reuters)
US Treasury prices fell to session lows on Monday even as a surprise drop in domestic new home sales in March supported a view of weak economic growth in 1Q16, which would keep the Fed from raising interest rates soon. Benchmark 10-year Treasury notes was last 3/32 lower in price, yielding 1.900%, up 1 basis point from late on Friday. (Reuters)
USA
Wall Street shares fell slightly on Monday dragged down by energy shares that tracked a decline in oil prices, while earnings results and guidance from companies weighed on the US market. With the S&P500 up in eight of the past 10 weeks and nearing the record high set almost a year ago, investors have found it is difficult to find reasons to push it even higher given the underwhelming earnings expectations and the prospects of higher interest rates. (Reuters)
New US single-family home sales unexpectedly fell in March, but the decline was concentrated in the West region, suggesting that the housing market continued to steadily improve. New US home sales decreased 1.5% to a seasonally adjusted annual rate of 511,000 units. February's sales pace was revised up to 519,000 units from the previously reported 512,000 units. Economists had forecast new home sales, which account for about 8.7% of the housing market, rising to a 520,000 unit-rate in March. (Reuters)
Europe
European shares edged lower on Monday, consolidating gains from a strong week which saw a top index touch a 3-month high. Falling business morale in Germany and a drop in French utility EDF also weighed on the markets. (Reuters)
German business morale fell in April. The German Ifo Business climate index came in at 106.6 in April, falling from 106.7 in March and missing a consensus forecast of 107. (Reuters)
Asia
BOJ is ready to act: BOJ Governor Haruhiko Kuroda has made it clear that buying more stock funds could be on the menu at the BOJ's meeting, which begins on 26 Apr. With interest rates already so low, the central bank has to find direct ways to lower the cost of funding for risky endeavours. Last week Kuroda told parliament the bank wasn't too big in ETFs, and there were still plenty of reasons to target risk premiums. (Reuters)
Global investors are expected to pull US$538bn out of China's slowing economy in 2016, the Institute of International Finance (IIF) estimated on Monday, although the pace of outflows has dropped from the US$674bn pulled out last year. (Reuters)
Commodities
Oil prices fell more than 2% on Monday as data pointed to fresh US crude builds, while leading banks in commodities said the two-month long oil market rebound has defied fundamentals. US crude settled down US$1.09 (-2.5%) at US$42.64 a barrel. Last week, it hit a five-month high of US$44.49. Brent closed down 63 cents (-1.4%) at US$44.48. It hit a mid-November high of US$46.18 last week. (Reuters)
Gold rose on Monday as a retreat in the US dollar helped to tempt back some buyers after the previous session's 1.3% slide, but moves were muted ahead of a Federal Reserve policy meeting this week. Spot gold was at US$1,237.11 an ounce, up 0.4%, while US gold futures for June delivery settled up 0.8% at US$1,240.20. (Reuters)
Prices of industrial metals slid on Monday as the market adopted a more cautious attitude towards demand growth in top consumer China, but losses were limited by the weaker dollar. Benchmark copper on the LME ended down 0.7% at US$4,998 a tonne. The metal, widely used in power and construction, touched US$5,091 on Friday, its highest in more than 4 weeks. (Reuters)
Source: aws.co.th / settrade.com
