Thai shares look set to trade a touch higher today in line with most Asian markets as a search for yield has driven global funds into emerging Asian stocks and bonds after the BOJ signaling no further expansion of bond buying. However, market gains should be limited by renewed global growth concerns after China’s trade data continued their downbeat trends, suggesting weak global and domestic demand. Locally, the euphoric mood of the ‘Yes’ vote on the charter draft that prompted a sharp rally yesterday could face profits taking today. The BOT governor has maintained his optimistic view over the Thai economy this year is positive.
Local issue
Yes vote to smooth Megaprojects process. Director-general of the Fiscal Policy Office said the Yes vote for the new charter should help ensure that the government’s 20 planned megaprojects are on track. The cabinet has already approved 11 projects and aims to sign 18-19 projects worth a combined Bt1.4tn by the end of this year, of which Bt60bn of the total investment budget will be taken out this year. (Bangkok Post)
Yes vote to smooth Megaprojects process. Director-general of the Fiscal Policy Office said the Yes vote for the new charter should help ensure that the government’s 20 planned megaprojects are on track. The cabinet has already approved 11 projects and aims to sign 18-19 projects worth a combined Bt1.4tn by the end of this year, of which Bt60bn of the total investment budget will be taken out this year. (Bangkok Post)
Comment: This gives positive sentiment as there should not be any more delays in public spending, which would help boost confidence for the private investment.
BoT maintains positive view on economy. Bank of Thailand (BoT) governor Veerathai Santiprabhob said the central bank optimistically believes Thailand’s GDP growth this year would be able to reach its target at 3.1% YoY bolstered by a robust tourism sector along with progressive public works spending, to offset weak domestic demand and doldrums in exports amid global economic sluggishness. (Bangkok Post)
RCEP talks to finalize by year-end Commerce Minister Apiradi Tantraporn said ten Asean countries and six trade partners; China, South Korea, Japan, India, Australia, and New Zealand wanted the Regional Comprehensive Economic Partnership (RCEP) to be finalized by the end of this year. If the RCEP is accomplished, it will be the world’s largest free-trade agreement. The RCEP committee will hold a meeting 12-19 Aug. (The Nation)
Global issues
US Treasuries debt yields were up slightly on Monday, with longer-dated maturities edging up to their highest levels in more than two weeks on a modest rise in expectations that the Federal Reserve could raise short-term interest rates by year-end. Benchmark 10-year Treasury notes fell 2/32 in price to yield 1.586%. Thirty-year Treasury bonds rose 6/32 in price to yield 2.302%. (Reuters)
US Treasuries debt yields were up slightly on Monday, with longer-dated maturities edging up to their highest levels in more than two weeks on a modest rise in expectations that the Federal Reserve could raise short-term interest rates by year-end. Benchmark 10-year Treasury notes fell 2/32 in price to yield 1.586%. Thirty-year Treasury bonds rose 6/32 in price to yield 2.302%. (Reuters)
The US dollar gained against a basket of currencies on Monday after a stronger-than-anticipated jobs report for July on Friday raised expectations the Fed is closer to raising interest rates. The dollar index gained 0.21% to 96.293. The dollar was up 0.62% against the yen at ¥102.44. (Reuters)
USA
Wall Street shares retreated from record highs on Monday as a drop in healthcare stocks offset gains bolstered by higher oil prices and a strong jobs report. A rally to several all-time highs since late June has caused concerns about stretched valuations. (Reuters)
Europe
European stock markets rose on Monday, propped up by gains in the shares of major banks. Stocks were also supported by a rally on US markets, with the S&P500 and Nasdaq hitting record highs after strong jobs data on Friday. (Reuters)
European stock markets rose on Monday, propped up by gains in the shares of major banks. Stocks were also supported by a rally on US markets, with the S&P500 and Nasdaq hitting record highs after strong jobs data on Friday. (Reuters)
Sixty one percent of companies on the STOXX 600 index have beaten or met forecasts with their 2Q16 results so far, although those earnings are down 15% YoY, according to data from Thomson Reuters StarMine. (Reuters)
Asia
Japan emperor worries about age: Japanese Emperor Akihito, 82, in an address to the public on Monday, said he worried that age may make it difficult for him to fully carry out his duties, remarks seen as suggesting the elderly monarch wants to abdicate. (Reuters)
China's exports and imports fell more than expected in July, pointing to further weakness in global demand in the aftermath of the Brexit. Imports fell 12.5% YoY, the biggest decline since February and suggesting China's domestic demand may be faltering despite a flurry of measures to stimulate growth. Exports fell 4.4% YTD. That resulted in a trade surplus of US$52.31bn in July, the biggest since January, versus June's US$48.11bn. (Reuters)
China shares inched up on Monday morning, as a surge in coal stocks and sustained interest in property shares ignited by the Vanke M&A drama offset the impact of worse-than expected trade data. (Reuters)
Commodities
Oil prices surged nearly 3% on Monday amid renewed speculation that OPEC would try to restrain output, easing oversupply worries that pressured the market to three-month lows last week. US crude futures settled up US$1.22 (+2.9%) at US$43.02 per barrel. Brent crude rose US$1.12 (+2.5%) to settle at US$45.39. (Reuters)
Oil prices surged nearly 3% on Monday amid renewed speculation that OPEC would try to restrain output, easing oversupply worries that pressured the market to three-month lows last week. US crude futures settled up US$1.22 (+2.9%) at US$43.02 per barrel. Brent crude rose US$1.12 (+2.5%) to settle at US$45.39. (Reuters)
Gold steadied after falling to a one-week low on Monday as downward momentum from stronger-than-expected US jobs figures lost steam, with concerns over negative global economic sentiment lending support. Spot gold was up 0.07% at US$1,335.99 an ounce, after dipping to US$1,329.55, the lowest since July 27. US gold for December delivery settled down 0.2% at US$1,341.30. (Reuters)
Source: aws.co.th / settrade.com
