Expect the SET to trade firmer today on positive leads from Wall Street and regional markets, rising expectations of new stimulus measures from major central banks and governments and tempering global risk aversion. A recovery in crude prices will also support energy shares. However, market gains might be limited and profit taking could take place after a strong rally in the last session. Local factors today are expected to have limited impact on overall market sentiment.
Local issue
SRT is reviewing to up land lease rates. The State Railways of Thailand (SRT) is reviewing its land rates to better reflect the real values of land and to seek public-private ventures in order to develop land along the Red Line and the high-speed railway routing Bangkok and Nakhon Ratchasima. Chairman of the SRT board said it will be difficult to make profit from these train services themselves, but rather a huge portion of profit should come from developing the land along the routes. (Bangkok Post)
Section 44 mulled to accelerate EEC. Kobsak Phutrakul, assistant minister to the Prime Minister's Office and a member of the working panel on Eastern Economic Corridor (EEC) development, said the EEC may need the exercise of Section 44 in an effort to tackle any existing obstacles to the ambitious project development. (Bangkok Post)
Global issues
Expectations return that the Federal Reserve would tighten monetary policy while other major central banks would loosen policy. There is a growing view that the Fed could raise interest rates at least once this year despite risk seen from recent geopolitical events. Meanwhile, expectations rose of additional easing from the BOJ at its 28-29 Jul meeting. For the ECB policy meeting later today, the latest market view is that the central bank is not expected to take any additional easing steps. The weakness of the euro provides automatic stimulus to the economy, which means the ECB can afford to wait. (Reuters)
Expectations return that the Federal Reserve would tighten monetary policy while other major central banks would loosen policy. There is a growing view that the Fed could raise interest rates at least once this year despite risk seen from recent geopolitical events. Meanwhile, expectations rose of additional easing from the BOJ at its 28-29 Jul meeting. For the ECB policy meeting later today, the latest market view is that the central bank is not expected to take any additional easing steps. The weakness of the euro provides automatic stimulus to the economy, which means the ECB can afford to wait. (Reuters)
Leading finance heads from the G20 economies will confront fresh fears about protectionism when they meet in Chengdu, China this weekend, with Brexit fallout and policy options to boost global growth expected to dominate talks. The focus will also be Donald Trump's US Presidential campaign in which protectionist themes are central, after his official nomination as the 2016 Republican candidate this week. (Reuters)
The dollar rose on Wednesday on rising expectations of a Fed rate hike this year. The dollar index hit a peak of 97.323, its highest level since 10 Mar. It was last trading at 97.073, little changed on the day. The dollar rose 0.77% against the yen to ¥107.01, its highest level since 13 Jun. The euro was flat against the dollar at US$1.1018. (Reuters)
US Treasury yields rose on Wednesday, bolstered by gains in stocks worldwide as well as a growing view that the Fed could raise interest rates at least once this year. Benchmark US 10-year Treasury notes were down 6/32 in price for a yield of 1.578%, up from 1.558% on Tuesday. (Reuters)
USA
Wall Street shares ended higher on Wednesday with the S&P500 and DJIA setting new record highs as Microsoft's strong results from sharp growth in its cloud computing business boosted market sentiment and marked the latest sign that this earnings results season may not be as bad as people feared after all. (Reuters)
Wall Street shares ended higher on Wednesday with the S&P500 and DJIA setting new record highs as Microsoft's strong results from sharp growth in its cloud computing business boosted market sentiment and marked the latest sign that this earnings results season may not be as bad as people feared after all. (Reuters)
2Q16 earnings for S&P500 companies are now expected to fall by 3.8% YoY, less than the 4.5% decline estimated earlier in the week, according to Thomson Reuters I/B/E/S. (Reuters)
Europe
European shares advanced on Wednesday, with the technology sector leading the market higher after SAP, Europe's largest software company, and ASML, a key supplier to semiconductor makers, reported forecast-beating quarterly results. So far, European earnings have been better than expected. (Reuters)
Asia
The Japanese government is planning to compile a stimulus package of at least ¥20tn (US$186.60bn) to help the economy emerge from deflation and fend off possible adverse effects of Brexit, Kyodo reported on Thursday. PM Shinzo Abe's government will seek Cabinet approval for the stimulus measures in early August. (Reuters)
The Japanese government is planning to compile a stimulus package of at least ¥20tn (US$186.60bn) to help the economy emerge from deflation and fend off possible adverse effects of Brexit, Kyodo reported on Thursday. PM Shinzo Abe's government will seek Cabinet approval for the stimulus measures in early August. (Reuters)
Confidence at Japanese manufacturers held steady in July but was expected to worsen to zero in the next three months, a Reuters poll found, as the Brexit clouds the outlook for Japan's export-reliant economy. (Reuters)
China's Sinopec has shut down a section of the Sichuan-East China gas pipeline in the country's central region after it was hit by a landslide and fire, killing two people. The fire was under control and the company was working to restore the facility that carries natural gas from the southwestern province of Sichuan to eastern China. (Reuters)
Commodities
Oil prices rose 1% on Wednesday after the US EIA reported a ninth straight week of crude inventory draws, easing some concerns in a market worried about a fuel glut. Brent crude futures settled up 51 cents (+1%) at US$47.17 a barrel. US crude futures rose 29 cents (+0.7%) to settle at US$44.94 a barrel. Brent's premium versus WTI reached its widest since the end of April. (Reuters)
Oil prices rose 1% on Wednesday after the US EIA reported a ninth straight week of crude inventory draws, easing some concerns in a market worried about a fuel glut. Brent crude futures settled up 51 cents (+1%) at US$47.17 a barrel. US crude futures rose 29 cents (+0.7%) to settle at US$44.94 a barrel. Brent's premium versus WTI reached its widest since the end of April. (Reuters)
Huge drawdown: The EIA said crude inventories fell 2.3mn barrels in the week to 15 Jul, close to analysts' expectations for a decrease of 2.1mn barrels. It was a ninth straight week of crude inventory draws. (Reuters)
Gold fell to its lowest level in three weeks on Wednesday as equities rose and the dollar hit a four-month high following strong US economic data, which raised expectations the Fed may hike interest rates before the end of the year. Spot gold fell 1.05% at US$1,317.80. US gold futures settled down 1% at US$1,319.30 per ounce. (Reuters)
Source: aws.co.th / settrade.com
