Expect the SET to trade in a tight range, as investors await a speech by Fed Chair Janet Yellen on Friday looking for more clues on a US interest rate hike while the dollar was on the defensive against its major peers. A mild correction in crude oil price should partially limit global equity markets. Locally, the BoT maintained its FY16 exports target in spite of an 8% YoY decline in April, believing Thailand is strong enough to withstand volatile global markets.
Local issue
BoT maintained FY16 exports target to fall just 2% in dollar terms in spite of 8% YoY decline in April. This is because April usually has annual factory shutdowns for holidays, hence, we should not just focus on one month figure. Specifically, BoT believes Thailand is strong enough to withstand volatile global markets due to its low foreign debt and low foreign investment in stocks and bonds, reducing risk from outflows, said BoT governor Veerathai Santiprabhob. (Bangkok Post)
BoT maintained FY16 exports target to fall just 2% in dollar terms in spite of 8% YoY decline in April. This is because April usually has annual factory shutdowns for holidays, hence, we should not just focus on one month figure. Specifically, BoT believes Thailand is strong enough to withstand volatile global markets due to its low foreign debt and low foreign investment in stocks and bonds, reducing risk from outflows, said BoT governor Veerathai Santiprabhob. (Bangkok Post)
E-payment required by 2019. All companies in Thailand must enter into the national e-payment system by 2019, said Finance Minister Apisak Tantivorawong. The move is designed to transform Thailand from a cash-based society to a cashless one and to help the government stem tax evasion and boost government revenue. (Bangkok Post)
Refiner margin should remain solid According to Fitch Ratings, earnings of Thai refiners and petrochemical producers are likely to remain solid in 2016 as persistently low oil prices should support demand. However, margins are expected to slow down from 2015 levels, owing to capacity additions and continuing pressure on middle-distillate products. (Bangkok Post)
Global issues
G7 concerned over emerging economies but not yet a crise. Group of Seven leaders voiced concern on Thursday about emerging economies, a senior Japanese official said as their host two-day G7 summit. However, they view that the current economic situation is not a crisis. (Reuters)
G7 concerned over emerging economies but not yet a crise. Group of Seven leaders voiced concern on Thursday about emerging economies, a senior Japanese official said as their host two-day G7 summit. However, they view that the current economic situation is not a crisis. (Reuters)
The US dollar fell on Thursday after U.S. economic data showed weakness in business spending plans, denting expectations for a Federal Reserve interest rate increase in June or July. The US dollar index hit 94.938, its lowest level in eight days. (Reuters)
USA
Wall Street ended flat on Thursday after two-day surge, as surging crude oil price took a breath after topping US$50 a barrel for the first time in about seven months, while investors are looking ahead to a speech by Fed Chair Janet Yellen on Friday for more clues on the U.S. rate outlook. (Reuters)
Wall Street ended flat on Thursday after two-day surge, as surging crude oil price took a breath after topping US$50 a barrel for the first time in about seven months, while investors are looking ahead to a speech by Fed Chair Janet Yellen on Friday for more clues on the U.S. rate outlook. (Reuters)
US durable goods orders surge in April, but core CAPEX fell. Orders for long-lasting U.S. manufactured goods surged 3.4% in April, after increasing 1.9% in March and higher than a 0.5% increase forecast by economists polled by Reuters, on strong demand for transportation equipment and a range of other products, but continued weakness in business spending plans suggested the manufacturing rout was far from over. Non-defense capital goods orders, a proxy for business spending plans, fell 0.8% after slipping 0.1% the prior month. (Reuters)
US jobless claims fall more than expected last week, moving back to near cycle lows as the labor markets remains healthy and the economy regains momentum after stumbling in the first quarter. Initial claims for state unemployment benefits declined 10,000 to a seasonally adjusted 268,000 for the week ended 21 May. Economists polled by Reuters had forecast initial claims falling to 275,000. (Reuters)
Europe
Europe stock markets closed higher on Wednesday (26 May) that was driven by a surge in mining stocks with the expectation that the European Commission may take measures to check dumping of imported steel products. Mining stocks rose. Marcel de Mittal rose 6.9%, boosted by expectations that the European Commission may take measures to check dumping of imported steel products and the US has announced a plan to increase taxation on imported corrosion resistant steel from China, India, Italy, South Korea and Taiwan. (Reuters)
Europe stock markets closed higher on Wednesday (26 May) that was driven by a surge in mining stocks with the expectation that the European Commission may take measures to check dumping of imported steel products. Mining stocks rose. Marcel de Mittal rose 6.9%, boosted by expectations that the European Commission may take measures to check dumping of imported steel products and the US has announced a plan to increase taxation on imported corrosion resistant steel from China, India, Italy, South Korea and Taiwan. (Reuters)
Asia
China's Ministry of Commerce (MOC) has slammed a new US final ruling against Chinese steel. The US Commerce Department announced anti-dumping duties of 209.97% and anti-subsidy duties of 39.05% on corrosion-resistant steel from China on Wednesday. China will take all necessary measures to gain fair treatment and safeguard the interests of enterprises (Reuters)
China's Ministry of Commerce (MOC) has slammed a new US final ruling against Chinese steel. The US Commerce Department announced anti-dumping duties of 209.97% and anti-subsidy duties of 39.05% on corrosion-resistant steel from China on Wednesday. China will take all necessary measures to gain fair treatment and safeguard the interests of enterprises (Reuters)
North China's Hebei Province, which produces one quarter of the nation's steel, has raised its targets for cutting iron and steel production this year. Iron production will be reduced by 17.26mn tonnes, up from a previous target of 10mn tonnes set in January. About 14.22mn tonnes of steel manufacturing will be phased out, up from an earlier target of 8mn tonnes. The new targets came after heavy criticism from a central government environmental inspection group, which exposed more than 2,800 environmental concerns. The province has previously said that it will cut a combined 160mn tonnes in steel, cement and coal production, and another 36mn weight cases of glass by 2017 compared with 2013 levels. (Reuters)
G-7 expressed concern today about the risks to the world economy and committed to driving strong and sustainable economic growth in a statement after the two-day summit. G-7’s leaders confirmed to avoid competitive devaluations. While warning about the sharp exchange rate adjustment. It represents a compromise between Japan and the United States. Japan has threatened to intervene in the market to stem the appreciation of the yen. The US opposed the intervention. G-7 stated that the expansion of the global economy remains on a moderate rate and well below trend. While there are still risks of weaker economic growth. The expansion of the world economy are top priorities.(Reuters)
Commodities
Gold lost its early gains on Thursday, hovering above the prior session’s seven-week low due to hawkish comments from FED president. Particularly, US gold futures settled down 0.3% at US$1,220.40 an ounce. (Reuters)
Gold lost its early gains on Thursday, hovering above the prior session’s seven-week low due to hawkish comments from FED president. Particularly, US gold futures settled down 0.3% at US$1,220.40 an ounce. (Reuters)
Copper prices hit two-week highs on Thursday corresponding to stronger oil and weaker dollar triggered fund buying, but the trend is anticipated to fade on a poor outlook for demand growth in top consumer China. Benchmark copper on London Metal Exchange increased 0.2% at US$4,661 a ton, from earlier session high at US$4,712. (Reuters)
Oil prices hit US$50/barrel on Thursday for the first time in 7 months, yet settled lower on the day as investors concerned over robust price gains could encourage excess supply. Brent settled down 15 cents at US$49.59/barrel. WTI declined by 8 cents to US$49.48/barrel. (Reuters)
Source: aws.co.th / settrade.com
