The baht opened at 33.35 to the US dollar on Thursday, unchanged from Wednesday’s closing rate.
The Thai currency is likely to move between 33.25 and 33.45 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon predicted that the baht would drift sideways. A factor that will cause the baht to strengthen is that the market is in a risk-on state which will also cause the dollar to weaken. Gold selling will also cause the baht to strengthen if the price goes up nearly 1,800 dollars per ounce.
However, foreign investment especially stocks might cause the baht to fluctuate. The baht will weaken if investors sell Thai stocks. In contrast, the baht will strengthen if investors buy Thai stocks.
Foreign investors are trading stocks this week until basic economy factors are clearly better and companies financial results were better than expected which analysts will decrease the valuation of Thai stocks because they are currently expensive.
The key resistance level for the baht would be from 33.50 to 33.60 to the dollar, which is the level at which exporters might sell the US currency.
The baht’s key support level would be from 33.10 to 33.20, the level some importers are waiting for so they can buy dollars, he added.
The market is in a risk-on state because companies financial results were better than expected. Investors were also not worried about inflation while the US Federal Reserve officials speculated that the inflation will be high only temporary. Most Fed officials revealed that Fed might use more tight monetary policies if the inflation is at a high level longer than expected in 2022.
Moreover, an alternative asset such as bitcoin hit a new all-time high, which reflects the risk-on state of the market.
Krungsri Securities forecast the Stock Exchange of Thailand (SET) Index on Thursday would fluctuate between 1,630 and 1,650 points.
set
It explained that the index gained positive sentiment from rising crude price of above US$83 per barrel and speculation in stocks whose third-quarter performance is expected to improve.
However, it advised investors to beware of institutions’ mass sell-offs of shares to adjust their portfolio and escape risks during three day holidays as it would pressure the index.
It also recommended buying of the following companies’ shares as an investment strategy:
▪︎ PTT, PTTEP, TOP, PTTGC, SPRC and BCP, which benefit from rising oil price and gross refining margin.
▪︎ BANPU, LANNA, GULF, CHG, BCH, BDMS, KCE, PSL and TTA, whose third-quarter profit is expected to grow.
U.S. equities continued their rally into a sixth day, putting the benchmark S&P 500 within reach of an all-time high.
The S&P 500 gained 0.4% as traders weighed company earnings against risks from inflationary pressures. Verizon Communications Inc. and Anthem Inc. were higher after better-than-expected results. Meanwhile, Novavax Inc. plunged on another vaccine delay, and Netflix Inc. was lower after an underwhelming outlook. Tesla Inc. will report after markets close.
The gains come on the heels of the S&P 500’s best start to an earnings season in the last two years with the index gaining about 3.6% in the first week. Solid corporate results have helped counter concerns stemming from elevated inflation, driving stocks higher. Elsewhere, crypto shares also rose as Bitcoin surged past a record.
“What we see is an earnings season that’s likely to be more volatile than the last several,” said Beata Kirr, co-head of investment strategies at Bernstein Private Wealth Management, on Bloomberg TV and Radio. The past couple quarters of have seen earnings expand 45% year over year, whereas consensus estimates for 2022 is a more moderate 9% year-over-year gain, she explained.
“Now that’s still positive,” she said. “And that’s one of the fundamental underpinnings that’s really driving the equity market forward.”
The yield on the 10-year Treasury note was little changed as corporate earnings have taken some of the spotlight away from concerns about stagflation — the combination of lower growth and higher inflation. Still, clouds are gathering over the economic recovery in the face of higher energy costs, global supply-chain bottlenecks and reduced central bank support.
The dollar continued to weaken against major peers on Wednesday as traders increased bets central banks around the world will raise interest rates before the Federal Reserve to combat price pressures. Governor Randal Quarles said the Fed is not “behind the curve” with its monetary policy and said he still views current price increases as “transitory.”
Oil gained in New York as inventories fell. Base metals declined after China launched a blitz of measures to tackle the energy crisis. Elsewhere, Congressional Democrats made headway in breaking a stalemate on the president’s multitrillion dollar tax and spending package.
“The market is very much testing how equipped companies and the rest of the economy are to be able to manage this type of transition where we have a less aggressive Fed, less supportive fiscal policy and more normal levels of economic growth,” Kara Murphy, chief investment officer at Kestra Investment Services, said. “There are definitely concerns out there, but for now risk assets seem to be brushing off those concerns.”
In Europe, food and beverage companies rose after Nestle SA and Deliveroo Plc forecast faster growth, while retailers fell after Kering SA reported slowing sales at Gucci. In Asia, equities were mixed as traders continued to monitor the debt woes at China’s real-estate developers. China Evergrande Group said it has terminated discussions to sell its property-management arm and asked that its shares resume trading in Hong Kong on Thursday.
Some of the main moves in markets:
Stocks
– The S&P 500 rose 0.4% as of 4 p.m. New York time
– The Nasdaq 100 fell 0.1%
– The Dow Jones industrial average rose 0.4%
– The MSCI World index rose 0.4%
Currencies
– The Bloomberg Dollar Spot Index fell 0.2%
– The euro rose 0.2% to $1.1652
– The British pound rose 0.2% to $1.3826
– The Japanese yen was little changed at 114.28 per dollar
Bonds
– The yield on 10-year Treasurys advanced one basis point to 1.65%
– Germany’s 10-year yield declined two basis points to -0.13%
– Britain’s 10-year yield declined two basis points to 1.15%
Commodities
– West Texas Intermediate crude rose 1.1% to $83.87 a barrel
As the Bitcoin rally nears records and takes Wall Street by storm, crypto bulls and bears can now jack up their bets with derivatives on the newly minted futures ETF — the latest industry watershed.
After the second-busiest exchange-traded debut on record, options on the ProShares Bitcoin Strategy ETF (ticker BITO) will begin trading on the NYSE Arca Options and NYSE American Options exchanges on Wednesday.
It means investors will be able to hedge or lever up underlying positions in the first U.S.-listed fund tracking futures on the world’s biggest digital currency. Traders — whether or not they hold the fund — can bet on or against BITO by buying and selling bullish call contracts or bearish puts.
It all represents a deepening of the crypto ecosystem for pros and day traders alike.
“Options are huge in this case,” said Eric Balchunas, senior ETF analyst at Bloomberg Intelligence. “Retail-YOLO types will be able to trade calls on Bitcoin for the first time in regulated financial markets. Institutions can use puts to hedge or go short Bitcoin.”
The options trading window opens as the world’s largest cryptocurrency moves toward its all-time high, fueled in large part by booming demand for BITO. Well over 20 million shares of the ETF changed hands Tuesday, data compiled by Bloomberg show, with assets in the fund closing the first day at around $570 million, according to ProShares.
The derivatives provide investors a fresh way to potentially profit from one of Bitcoin’s most defining characteristics — its volatility. While the coin has surged about 120% in 2021, that advance came with a more than 55% drawdown along the way. Bitcoin’s last three full-year returns were a 74% loss followed by gains of 95% and 305%.
“That’s one of the most exciting pieces about this asset class — volatility,” said Jesse Proudman, co-founder and CEO at Makara, an automated crypto investment advisor. “So any additional option, pardon the pun, that U.S. investors have to obtain access to options I think is a net benefit.”
Of course, options can deliver crushing losses in addition to amplifying gains. That’s a lesson many individual investors learned the hard way in the past 18 months, as a stock rebound from the Covid crash and subsequent turbulence whiplashed an army of day traders.
The introduction of ETF options should serve to make the crypto derivatives market more liquid as a whole, according to David Abner at Gemini Trust, a digital asset firm.
“Yes, you can go to crypto platforms and trade options, no question — but you have to go to crypto platforms to do that,” Abner said. Options on the fund “adds to the ecosystem around the ETF which enables better trading for it, so I think it’s a good thing for both options traders and investors and the ETF itself,” he said.
The Stock Exchange of Thailand (SET) Index closed at 1,637.55 on Wednesday, up 7.16 points or 0.44 per cent. Transactions totalled 67.91 billion baht with an index high of 1,639.41 and a low of 1,632.62.
The index rose after sliding by 13.53 points or 0.82 per cent on Tuesday.
In the morning session, Krungsri Securities forecast the SET Index on Wednesday would fluctuate between 1,620 and 1,640 points.
It said the index would indicate negative sentiment from the lack of new factors, including a sales force to adjust the port after the index failed to pass the previous high of 1,660 points and the International Monetary Fund’s (IMF) forecast of the drop of Thai GDP in 2021 and 2022.
“However, the crude oil prices that remain at a high level, including the expected recovery of Thai economy from the country’s opening will help support the index to rebound,” Krungsri Securities said.
The 10 stocks with the highest trade value today were KBANK, SCB, BANPU, SCGP, PTT, KCE, PTTEP, AOT, SCC and PTTGC.
Japan’s Nikkei Index closed at 29,255.55, up 40.03 points or 0.14 per cent.
China’s Shanghai SE Composite closed at 3,587.00, down 6.15 points or 0.17 per cent, while the Shenzhen SE Component closed at 14,452.25, down 47.52 points or 0.33 per cent.
Hong Kong’s Hang Seng Index closed at 26,136.02, up 348.81 points or 1.35 per cent.
South Korea’s KOSPI Index closed at 3,013.13, down 15.91 points or 0.53 per cent.
Taiwan’s TAIEX Index closed at 16,887.82, down 12.85 points or 0.076 per cent.
The price of gold in Thailand on Wednesday morning was unchanged from Tuesday close.
AGold Traders Association report at 9.26am said the buying price of a gold bar was THB27,950 per baht weight and selling price THB28,050, while the buying and selling price of gold ornaments is THB27,439.60 and THB28,550, respectively.
The spot gold price on Wednesday morning hovered around US$1,770 (THB59,234) per ounce after Comex gold at close on Tuesday rose by $4.8 to $1,770.5 per ounce due to support from the depreciation of the US dollar, including buying the precious metal as a safe-haven asset after the US disclosed weak economic data.
Krungsri Securities forecast the Stock Exchange of Thailand (SET) Index on Wednesday would fluctuate between 1,620 and 1,640 points.
It said the index would indicate negative sentiment from the lack of new factors, including a sales force to adjust the port after the index failed to pass the previous high of 1,660 points and the International Monetary Fund’s (IMF) forecast of the drop of Thai GDP in 2021 and 2022.
“However, the crude oil prices that remain at a high level, including the expected recovery of Thai economy from the country’s opening will help support the index to rebound,” Krungsri Securities said.
It also recommended buying of the following companies’ shares as an investment strategy:
AOT, BA, MINT, KBANK, SCB, CPN, CRC, HMPRO, CPALL, AMATA, WHA, MAJOR, BTS and BEM, which benefit from the country reopening.
PTT, PTTEP, TOP, PTTGC, SPRC and BCP, which benefit from rising oil price and gross refining margin.
The SET Index rose by 3.54 points or 0.22 per cent to 1,633.93 on Wednesday morning, witnessing a high of 1,636.08 and a low of 1,632.62 in opening trade.
The baht opened at 33.37 to the US dollar on Wednesday, weakening from Tuesday’s closing rate of 33.30.
The Thai currency is likely to move between 33.30 and 33.50 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said that the baht will fluctuate in the short term. The dollar was weakened by the gold price which caused the baht to strengthen. The baht is also strengthening because of foreign investments. The market was in a risk-on state which could pressure the dollar to weaken.
However, he said that foreign investors will start to sell Thai stocks relating to country opening as they sold Thai stocks for 1.6 billion baht yesterday.
Poon added that foreign investors will invest back in Thai stocks if the Thai economy recovers, which will cause the baht to strengthen.
The gold price also affected the dollar. Gold investors are waiting to buy gold in the range of 1,760 to 1,770 dollars per ounce and waiting to sell nearby at 1,800 per ounce.
U.S. equities extended a rally on Tuesday as solid corporate results helped counter concerns stemming from elevated inflation.
The S&P 500 rose 0.6% as earnings at Travelers Cos. and Johnson & Johnson beat expectations while higher commodity and freight costs weighed on shares of Procter & Gamble Co. Crypto stocks were also higher as Bitcoin climbed toward a record and the first futures exchange-traded fund launched.
A fifth day of gains brings the benchmark index about half a percent away from an all-time high as the market grapples with the prospect of tighter monetary policy amid rising prices. The dollar was weaker against major peers as traders raised bets central banks around the world would raise interest rates before the Federal Reserve. Meanwhile, global bond yields were mixed with the U.S. 10-year Treasury yield higher at 1.63%.
“Another week of upbeat results could be the boost that bulls are after to recapture those record levels,” said Fiona Cincotta, senior financial markets analyst at City Index.
Investors are paying close attention to the earnings season to see how higher costs for energy and raw materials are affecting margins. Crude oil in New York climbed in a volatile session after Russia signaled it may not give Europe extra gas without approval for the Nord Stream 2 pipeline. Meanwhile, base metals took a breather on the race to record highs.
“This earnings season could be highly important for investors, as inflation, labor, supply, and currency risks settle in,” said Lauren Goodwin, economist and portfolio strategist at New York Life Investments. “We will be particularly attuned to companies’ guidance on the path ahead and whether higher costs could reduce corporate margins.”
Speakers from the Federal Reserve this week are also expected to try to calm the market ahead of plans to begin tapering asset purchases.
“They’re probably going to be very careful and cautious on rate hikes because of the fact that they just don’t have enough information on the inflation front,” said Subadra Rajappa, managing director and head of U.S. rates strategy at Societe Generale. “That’s why I think you’re seeing a little bit of an adjustment in the two year part of the curve this morning.”
Some of the main moves in markets:
Stocks
The S&P 500 rose 0.7% as of 4 p.m. EDT
The Nasdaq 100 rose 0.7%
The Dow Jones industrial average rose 0.6%
The MSCI World index rose 0.7%
Currencies
The Bloomberg Dollar Spot Index fell 0.3%
The euro rose 0.2% to $1.1635
The British pound rose 0.5% to $1.3792
The Japanese yen was little changed at 114.34 per dollar
Bonds
The yield on 10-year Treasurys advanced four basis points to 1.64%
Germany’s 10-year yield advanced four basis points to -0.11%
Britain’s 10-year yield advanced three basis points to 1.17%
Commodities
West Texas Intermediate crude rose 0.5% to $82.84 a barrel
WASHINGTON – Facebook has agreed to pay penalties totaling more than $14 million under a settlement with the Justice Department over findings that the companys hiring practices intentionally discriminated against Americans in favor of foreign workers, U.S. officials said Tuesday.
The social-media behemoth has also agreed in a settlement with the Labor Department to do more to recruit Americans for technology jobs and be subject to federal scrutiny for up to three years, the officials said.
The agreements came after the Justice Department sued Facebook in December for allegedly failing to properly advertise at least 2,600 jobs – and consider applications from U.S. citizens – before offering the spots to foreigners whom the company was sponsoring for green cards granting permanent residency in 2018 and 2019.
The lawsuit said Facebook’s practices violated federal laws that require employers to demonstrate that there are no qualified U.S. workers available before offering positions to temporary foreign workers they are sponsoring.
Facebook has agreed to pay a civil penalty of $4.75 million to the U.S. government and up to $9.5 million to eligible victims of Facebook’s alleged discrimination, which officials said was the largest monetary settlement of its kind under the anti-discrimination provisions in U.S. immigration laws.
Officials said the Justice Department will work with the company to determine potential victims. But they said it was too early to know how many people might be eligible for damages.
“Facebook is not above the law and must comply with the nation’s federal civil rights laws,” said Assistant Attorney General Kristen Clarke, who oversees the Justice Department’s civil rights division. “Companies cannot set aside certain positions for temporary visa holders because of their citizenship or immigration status.”
U.S. officials said Facebook also has agreed to train staff on federal anti-discrimination requirements. For the next three years, the Labor Department will audit the company’s petitions for temporary visa holders under the federal government’s permanent labor certification program.
Facebook said in a statement that the company believes it “met the federal government’s standards” under federal law but agreed to settle the case “to end the ongoing litigation and move forward.” Company officials noted that the number of jobs referenced in the Justice Department’s suit represented a fraction of Facebook’s workforce. The company ended the second quarter of this year with more than 63,400 full-time employees globally and 3,000 job openings, company officials said.
The settlements with the federal government “will enable us to continue our focus on hiring the best builders from both the U.S. and around the world, and supporting our internal community of highly skilled visa holders who are seeking permanent residence,” the company said in the statement.
Yet the $14 million fine underscores how Facebook and other tech giants can’t escape the increased scrutiny of their businesses that began under the Trump administration.
The Justice Department’s initial lawsuit against Facebook highlighted long-running tensions between the former president and tech companies over their reliance on high-skilled, foreign workers.
The industry is largely more aligned with the Biden White House on immigration, especially after he reversed course on many of Trump’s policies. But the settlement reflects a growing focus among Democrats on the ways that tech giants are potentially harming American workers. Labor Department Solicitor Seema Nanda emphasized that her agency is willing to enforce the law “no matter an employer’s size or reach.”
Facebook, in particular, tried for years to increase the ranks of high-skilled foreign laborers in the United States, including programs such as the H-1B visa, to power their highly technical operations.
In its complaint in December, the Justice Department said the company eschewed its traditional hiring process in cases where it wanted to hire an employee on an H-1B visa for a permanent position. When a temporary visa holder sought such a job, Facebook “diverged from its normal recruiting protocols,” according to the government, opting in some cases against “advertising the position on its external website.”
If a U.S. worker applied for one of these jobs – and Facebook determined they were qualified – the company appeared to hire them in a different capacity, the lawsuit found. Federal law generally only allows a company to sponsor a temporary worker for a permanent position in cases where there is no qualified U.S. applicant.
The record-breaking penalty will have little impact on Facebook’s bottom line, as the company generated about $29 billion in revenue in the second quarter of this year alone.
But the increased federal scrutiny of its hiring practices comes as the company is already battling myriad regulatory threats in Washington. The Biden administration has signaled a tough line on regulating the tech giants, with the administration nominating some of the companies’ largest critics to key positions.
The Justice Department is playing a central role in those efforts, with an existing antitrust lawsuit against Google and scrutiny of other tech giants, including Apple. Biden’s nominee to run the department’s antitrust division, Jonathan Kanter, is a prominent critic of huge technology companies.
Facebook is already fighting a Federal Trade Commission antitrust lawsuit, which was initially brought under the Trump administration and refiled earlier this year under the agency’s new chair, Lina Khan, a longtime critic of big tech companies.
Lawmakers are increasingly threatening to regulate the company following revelations from a former employee about internal company research on the detriments of its products.
Lawyers representing that employee, Facebook whistleblower Frances Haugen, have made at least eight complaints with the Securities and Exchange Commission.
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