Thai shares look set to trade in a tight range today, with positive bias, as investors are likely to prefer to sit on the side line ahead of an all-important US non-farm payroll report for July that might give a clue on whether the US economy is strong enough to hike interest rates, following a recent series of strong economic data except for 2Q16 US GDP. Locally, consumer confidence was up for the first time in July which is very encouraging. Thai people are braced for the charter referendum on Sunday. Please see our report on Charter Referendum released today.
Local issue
July consumer confidence up. A survey by University of Thai Chamber of Commerce (UTCC) reported that consumer confidence in July was at 72.5, reversing from the 25-month low of 71.6 in June. The turning point indicates easing worries about the impact of the recent drought, as well as positive impact from the government’s accelerated budget disbursement. (Bangkok Post)
Comment: The figures are anticipated to see more improvement in 2H16, with public spending and stimulus measures as the key catalysts.
To turn Thailand into EV manufacturing hub. The Finance Ministry along with Excise Department are ready to offer tax incentives as well as reduction of customs duty for importing electric vehicles (EVs) auto parts to encourage carmakers to assemble EVs in Thailand, as part of the country’s efforts to turn into a manufacturing hub for such vehicles. (Bangkok Post)
Bt3.9bn set aside to support rice crop price. The government is set to use Bt3.9bn to absorb as much as 12.5mn tons of rice from the new crop during the harvest season from November this year to February next year, from the total 27.7mn tons of paddy expected to be reaped, in an effort to prevent the rice price from falling. (Bangkok Post)
Global issues
US Treasury yields fell on Thursday, with some short- and medium-term issues hitting their lowest levels in more than three weeks, after the Bank of England cut interest rates for the first time since 2009 and said it would buy government bonds. Yields on Treasuries maturing between two, three and five years hit their lowest levels in more than three weeks of 0.647%, 0.745% and 1.017%, respectively. (Reuters)
The dollar gained against a basket of currencies for a second straight session on Thursday ahead of Friday’s crucial US nonfarm payrolls report for July. The dollar index gained 0.1% to 95.674, holding above a low of 95.003 touched earlier this week. Sterling tumbled 1.5% to end at US$1.3122, posting its largest one-day fall in a month against the dollar after the BOE cut interest rates. (Reuters)
USA
Wall Street shares finished little changed on Thursday as investors kept to the sidelines ahead of Friday's US non-farm payrolls report for July. The monthly hiring data will help investors gauge the health of the economy and possibly offer insight as to when the Federal Reserve will raise interest rates again. (Reuters)
July consumer confidence up. A survey by University of Thai Chamber of Commerce (UTCC) reported that consumer confidence in July was at 72.5, reversing from the 25-month low of 71.6 in June. The turning point indicates easing worries about the impact of the recent drought, as well as positive impact from the government’s accelerated budget disbursement. (Bangkok Post)
Comment: The figures are anticipated to see more improvement in 2H16, with public spending and stimulus measures as the key catalysts.
To turn Thailand into EV manufacturing hub. The Finance Ministry along with Excise Department are ready to offer tax incentives as well as reduction of customs duty for importing electric vehicles (EVs) auto parts to encourage carmakers to assemble EVs in Thailand, as part of the country’s efforts to turn into a manufacturing hub for such vehicles. (Bangkok Post)
Bt3.9bn set aside to support rice crop price. The government is set to use Bt3.9bn to absorb as much as 12.5mn tons of rice from the new crop during the harvest season from November this year to February next year, from the total 27.7mn tons of paddy expected to be reaped, in an effort to prevent the rice price from falling. (Bangkok Post)
Global issues
US Treasury yields fell on Thursday, with some short- and medium-term issues hitting their lowest levels in more than three weeks, after the Bank of England cut interest rates for the first time since 2009 and said it would buy government bonds. Yields on Treasuries maturing between two, three and five years hit their lowest levels in more than three weeks of 0.647%, 0.745% and 1.017%, respectively. (Reuters)
The dollar gained against a basket of currencies for a second straight session on Thursday ahead of Friday’s crucial US nonfarm payrolls report for July. The dollar index gained 0.1% to 95.674, holding above a low of 95.003 touched earlier this week. Sterling tumbled 1.5% to end at US$1.3122, posting its largest one-day fall in a month against the dollar after the BOE cut interest rates. (Reuters)
USA
Wall Street shares finished little changed on Thursday as investors kept to the sidelines ahead of Friday's US non-farm payrolls report for July. The monthly hiring data will help investors gauge the health of the economy and possibly offer insight as to when the Federal Reserve will raise interest rates again. (Reuters)
Better-than-expected 2Q16 results: Of the data through Thursday morning of the 403 companies in the S&P500 that have posted 2Q16 earnings, 70% have topped expectations, in line with the beat rate for the past four quarters, according to Thomson Reuters. Earnings are expected to show a decline of 2.8% for 2Q16, better than the 4.5% decline expected on July 1. (Reuters)
Europe
European shares rose on Thursday as a rise in the shares of major financial and industrial stocks such as Aviva and Siemens boosted the region's equity markets. (Reuters)
The Bank of England lowered its key lending rate to 0.25% from 0.5% and said it would take "whatever action is necessary" to achieve stability in the wake of Britain's vote to leave the EU. The BOE also launched two new schemes, one to buy £10bn of high-grade corporate bonds and another - potentially worth up to £100bn - to ensure banks keep lending even after the rate cut. (Reuters)
Asia
Toyota profit beats estimates: Toyota Motor reported that a strong yen pushed its operating profit down 15% to ¥642bn (US$6.34bn) in 2Q16. That beat an average estimate of ¥493.5bn from 11 analysts surveyed by Thomson Reuters I/B/E/S/. (Reuters)
Commodities
Oil prices rose nearly 3% on Thursday, with US crude advancing firmly above the US$40-per-barrel mark Genscape reported that stockpiles at the Cushing, Oklahoma delivery hub for US crude futures fell 89,071 barrels during the week to Aug. 2. The Genscape report came after US EIA’s data on Wednesday showed a 1.1mn-barrel decline at Cushing in the week to July 29. US crude futures rose US$1.10 (+2.7%) to settle at US$41.93 per barrel. Brent crude settled up US$1.19 (+2.8%) at US$44.29 a barrel. (Reuters)
Gold prices turned higher on Thursday after the BOE cut interest rates though gains were muted by strength in the dollar after the previous day's upbeat US private jobs data. Spot gold was up 0.4% at US$1,362.60 an ounce while US gold futures for December delivery were up US$4.30 an ounce at US$1,369.00. (Reuters)
Source: aws.co.th / settrade.com
