Thai shares look set to trade in a narrow range today as even though Wall Street snapped a 5-day losing streak overnight, the market is still under pressure and on course for a weekly drop on fears of fresh global market turmoil if Britain votes to exit the EU next week. The killing of a key campaigner overnight could sway public opinion toward the "Remain" camp. Meanwhile, it seems to always be good news for the tourism sector. There were 32.3mn passengers using six major airports during the first four months of the year, up a robust 13.7% YoY. Foreign companies agreed on their optimism on the outlook of CLMVT countries, which is a boon to Thailand’s economy.
Local issue
CLMVT shows promising potential: Foreign companies’ executives reiterated their optimism on the growth outlook of CLMVT countries, highlighting the sub-region’s potential to become a key automobile supply chain centre. Commerce Minister Apiradi Tantraporn expects exports to CLMV to rise by 13.6% YoY this year, though the value in the first four months, at US$6.8bn (Bt240bn), contracted by 4.2%. Intra-regional trade is also expected to increase by 16% this year. (The Nation)
CLMVT shows promising potential: Foreign companies’ executives reiterated their optimism on the growth outlook of CLMVT countries, highlighting the sub-region’s potential to become a key automobile supply chain centre. Commerce Minister Apiradi Tantraporn expects exports to CLMV to rise by 13.6% YoY this year, though the value in the first four months, at US$6.8bn (Bt240bn), contracted by 4.2%. Intra-regional trade is also expected to increase by 16% this year. (The Nation)
Passenger traffic saw robust growth in 4M16. AOT reported a total of 32.3mn passengers passed through six major airports, including Suvarnabhumi, during Jan – Apr, rising 13.7% YoY. The increased figure was particularly driven by Thailand’s popularity as a global tourist destination, increased political stability, active tourism campaigns, and influx of Chinese tourists. (Bangkok Post)
3.5km high-speed train got the nod yesterday. The joint committee on the Thai-Chinese train cooperation agreed yesterday to kick start the construction of a short 3.5km section in tambon Klang Dong of Nakhon Ratchasima’s Pak Chong district while the overall project is left for further negotiations. The construction of this short-section high speed train is expected to commence in Sept after a bidding call in Aug, said Transport Minister Arkhom Termpittayapaisith. (Bangkok Post)
Global issues
‘Remain’ campaigner killed on duty: British Member of Parliament Jo Cox was shot dead in the street in her constituency in northern England Thursday. Cox, an opposition Labour lawmaker, had been a vocal supporter of Britain remaining within the EU. The referendum campaign groups on both sides have suspended their activities for next week’s referendum following the incident. The incident is said to potentially swing the undecided voters to the ‘Remain’ side. (Reuters)
‘Remain’ campaigner killed on duty: British Member of Parliament Jo Cox was shot dead in the street in her constituency in northern England Thursday. Cox, an opposition Labour lawmaker, had been a vocal supporter of Britain remaining within the EU. The referendum campaign groups on both sides have suspended their activities for next week’s referendum following the incident. The incident is said to potentially swing the undecided voters to the ‘Remain’ side. (Reuters)
US benchmark Treasury yields fell to their lowest in four years on Thursday after the BOJ’s decision not to add stimulus, following the Fed's announcement on Wednesday it would keep interest rates steady. Benchmark 10-year Treasury notes were last up 8/32 in price to yield 1.565%. Yields fell as low as 1.518% in early trading. (Reuters)
The yen jumped to its highest in more than three years against the euro and its strongest in nearly two years versus the dollar on Thursday after the BOJ held off from further easing and the Fed struck a cautious tone on the US economy. The dollar was down 1.6% at ¥104.34. It hit a 22-month low earlier in the session below ¥104.00, and kept the market on alert for possible Japan intervention to rein in the yen's recent strength. The euro dropped 1.8% against the yen to ¥117.25. (Reuters)
USA
Wall Street shares ended slightly higher on Thursday, snapping a five-day losing streak, as investors digested the implications of a British lawmaker's death on the country's impending referendum on whether to leave the EU. (Reuters)
Wall Street shares ended slightly higher on Thursday, snapping a five-day losing streak, as investors digested the implications of a British lawmaker's death on the country's impending referendum on whether to leave the EU. (Reuters)
Europe
European shares rose on Wednesday after a five-day losing streak caused by jitters over next week's British referendum on EU membership, with a reassuring earnings update and bid talk boosting Zodiac Aerospace. (Reuters)
European shares rose on Wednesday after a five-day losing streak caused by jitters over next week's British referendum on EU membership, with a reassuring earnings update and bid talk boosting Zodiac Aerospace. (Reuters)
Asia
The BOJ kept monetary policy steady on Thursday even as sluggish global growth and anaemic inflation put policymakers under pressure to do more to reflate the economy out of stagnation, bolstering the yen. (Reuters)
The BOJ kept monetary policy steady on Thursday even as sluggish global growth and anaemic inflation put policymakers under pressure to do more to reflate the economy out of stagnation, bolstering the yen. (Reuters)
US: Return to weak yuan policy would reignite tension: US Treasury Secretary Jack Lew warned China on Thursday that a return to its policy of keeping the yuan's exchange rate artificially low against the dollar would trigger a new round of tensions between the two countries. (Reuters)
Indonesia central bank cuts rates: Indonesia's central bank, seeing a window of opportunity after the Fed held US interest rates, surprised financial markets on Thursday by cutting its main rates in a bid to lift sagging growth in Southeast Asia's largest economy. (Reuters)
Commodities
Oil prices slumped about 4% and hit one-month lows on Thursday, settling down for a sixth straight day, on fears of global economic turmoil if Britain exits the EU. Brent crude futures' front-month contact settled down US$1.78 (-3.6%) at US$47.19 per barrel. US crude futures settled down US$1.80 (-3.8%) at US$46.21 a barrel. (Reuters)
Oil prices slumped about 4% and hit one-month lows on Thursday, settling down for a sixth straight day, on fears of global economic turmoil if Britain exits the EU. Brent crude futures' front-month contact settled down US$1.78 (-3.6%) at US$47.19 per barrel. US crude futures settled down US$1.80 (-3.8%) at US$46.21 a barrel. (Reuters)
Gold turned lower on Thursday, as sterling bounced higher and US stock markets came well off their lows following the suspension of Britain's campaign for next week's referendum after a member of Parliament was shot dead. Spot gold was down 0.4% at US$1,285.76 an ounce. US gold futures for August delivery settled up 0.8% at US$1,298.40 an ounce. (Reuters)
Source: aws.co.th / settrade.com
