Expect SET to trade lower today after yesterday’s bottom-fishing rally as the Brexit vote continued to roil global financial markets and led investors to seek safe-haven assets. Rating agencies downgraded sovereign ratings on the UK which will adversely affect the British pound, UK’s financial and non-financial sectors even further. Falling oil prices should also dampen the energy sector. Most local factors today are bit and piece and there is no new catalyst to bolster the market.
Local issue
TAT is capturing more Chinese travelers through various strategies such as its latest collaboration with Tencent Holding and previously-announced cooperation with Baidu to increasingly promote tourisms in Thailand, while China’s government recently allowed the country's airlines to operate more regional flights, including to Thailand. (Bangkok Post)
TAT is capturing more Chinese travelers through various strategies such as its latest collaboration with Tencent Holding and previously-announced cooperation with Baidu to increasingly promote tourisms in Thailand, while China’s government recently allowed the country's airlines to operate more regional flights, including to Thailand. (Bangkok Post)
Thailand encouraged to revise laws to boost trade. Thailand Development Research Institute (TDRI) urged the government to reorganize hundreds of laws and other trade-related acts to ensure that the new versions match international standards and can promote more trade and investment to make Thailand a trading nation. (Bangkok Post)
Global issues
UK government is now in disarray and all EU members led by Germany have agreed that they will not start negotiating anything before Britain invokes Article 50, in other words, starts a formal withdrawal process. (Reuters)
UK government is now in disarray and all EU members led by Germany have agreed that they will not start negotiating anything before Britain invokes Article 50, in other words, starts a formal withdrawal process. (Reuters)
The British pound fell to a 31-year low against the US dollar on Monday on anxiety over the aftermath of the Brexit vote, while the euro also dipped. Sterling hit US$1.3122, its lowest level since mid-1985 and marking a roughly 11.7% fall from the currency's closing level on 23 Jun, the day of the referendum. (Reuters)
The US Treasury debt market rallied on Monday with benchmark yields hovering near four-year lows in a global scramble for safe-haven investments following the Brexit vote. Benchmark 10-year notes gained 1-4/32 in price to yield 1.455%, down 12 basis points from Friday. The 10-year yield booked its steepest two-day drop since November 2011. (Reuters)
USA
Wall Street shares tumbled again on Monday as Britain's surprise exit vote from the EU last week continued to roil global markets and led investors to seek safe-haven assets. Major US stock indexes plunged to their worst two-day dips in about 10 months. The Nasdaq dropped more than 2% amid fears that fallout from Britain's decision could hit business investment spending in the technology sector. Banks were among the worst-hit as investors discounted chances the Fed will raise interest rates in the near term. (Reuters)
Wall Street shares tumbled again on Monday as Britain's surprise exit vote from the EU last week continued to roil global markets and led investors to seek safe-haven assets. Major US stock indexes plunged to their worst two-day dips in about 10 months. The Nasdaq dropped more than 2% amid fears that fallout from Britain's decision could hit business investment spending in the technology sector. Banks were among the worst-hit as investors discounted chances the Fed will raise interest rates in the near term. (Reuters)
Europe
European shares fell on Monday, with banks making their biggest two-day loss on record as uncertainty over Britain's decision to leave the EU continued to rock global markets. Britain's exit from the EU would likely put more pressure on European bank earnings, already stretched by ultra-low interest rates, low growth and a pile of bad debt. (Reuters)
European shares fell on Monday, with banks making their biggest two-day loss on record as uncertainty over Britain's decision to leave the EU continued to rock global markets. Britain's exit from the EU would likely put more pressure on European bank earnings, already stretched by ultra-low interest rates, low growth and a pile of bad debt. (Reuters)
S&P lowers UK sovereign credit rating to AA from AAA. It also downgraded to 'AA' from 'AAA' long-term issuer credit rating on the Bank of England. It put on a negative outlook to reflect risk to economic prospects, fiscal and external performance, and role of sterling as a reserve currency. S&P said the downgrade also reflects risks of a marked deterioration of external financing conditions. Vote for "remain" in Scotland and Northern Ireland also creates wider constitutional issues for the country as a whole. (S&P)
Asia
Japan Brexit responses: In the wake of Brexit vote, the BOJ is likely to come up with more monetary easing at their July 28-29 meeting. Meanwhile, the MOF is working on plans to double supplemental spending set for autumn and the government are trying to talk the yen back down via the threat of intervention. (Reuters)
China's PM Li Keqiang on Monday said he was confident China will achieve its main economic growth targets in 2016 and that the country's economy will not face a hard landing. In a speech at the World Economic Forum (WEF) in the northern city of Tianjin, Li also said China would push forward with financial reforms and reforms to state-owned enterprises. (Reuters)
Profits of Chinese industrial companies rose 3.7% YoY in May, slowing from April's pace and adding to concerns that the world's second-largest economy may be losing some momentum. A return to profit growth in 1Q16 and a strong jump in March in particular had fueled hopes that China's economy was perking up, but data since then has suggested it may be stabilising at best. (Reuters)
China's yuan tumbled to 5-1/2 year low versus the dollar on Monday as the central bank tolerated the Chinese currency's weakening after the Brexit by setting a sharply weaker midpoint and refraining from intervening in trading. (Reuters)
Commodities
Crude prices tumbled nearly 3% on Monday, with Brent hitting seven-week lows, as a rallying dollar and market uncertainty over the Brexit vote threatened to sap more strength from oil's rebound this year. Brent settled down US$1.25 (-2.6%) at US$47.16 a barrel. US crude fell US$1.31 (-2.8%) to settle at US$46.33. (Reuters)
Crude prices tumbled nearly 3% on Monday, with Brent hitting seven-week lows, as a rallying dollar and market uncertainty over the Brexit vote threatened to sap more strength from oil's rebound this year. Brent settled down US$1.25 (-2.6%) at US$47.16 a barrel. US crude fell US$1.31 (-2.8%) to settle at US$46.33. (Reuters)
Gold rose on Monday, staying close to the more than two-year high hit on Friday as uncertainty over the Brexit vote pushed investors to seek safe assets. Spot gold rose as much as 1.5% to a session high of US$1,335.30 an ounce and was up 0.7% at US$1,325.01 for the day. It rallied 8% to US$1,358.20 at one stage on Friday, the highest price since March 2014. (Reuters)
Source: aws.co.th / settrade.com
