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https://www.nationthailand.com/business/40003930

U.S. stocks climb toward record on GDP, jobs data

U.S. equities rose toward all-time highs as the latest read on the economy eased concerns about inflation and the Federal Reserve scaling back its ultra-accomodative policies.

All of the main American stock indexes advanced, with the S&P 500 and Dow Jones industrial average touching records. Ford Motor Co. rallied after a surprise profit. Facebook Inc. weighed on the Nasdaq 100 after the social-media company gave a cautious outlook. And Amazon.com Inc. fell in extended trading after its sales forecast fell short.

Stocks in the U.S. jumped after gross domestic product data showed that consumer spending was strong in the second quarter even as overall growth trailed expectations. A separate report showed applications for U.S. state unemployment fell last week, but were still higher than forecast. The data comes a day after Fed Chair Jerome Powell said officials are moving closer to when they can start reducing bond purchases but there’s still some way to go before doing so.

Yields on 10-year Treasuries rose, while the dollar weakened. West Texas Intermediate crude extended gains past $73 a barrel as U.S. stockpiles declined.

“The disappointing jobless claims numbers put some firepower behind Powell’s comments yesterday, emphasizing that we have a ways to go for the labor market to recover,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial. “The miss on GDP only puts a finer point on the fact that growth may be stalling.”

Meanwhile, the U.S. Senate voted to move ahead with a broad infrastructure package, after a bipartisan group of senators and the White House reached an agreement on a $550 billion plan.

In other stock moves, Robinhood Markets Inc. had a choppy market debut. The online trading platform slid as much as 12% before climbing back closer to its initial public offering price. PayPal Holdings Inc. slid the most since March after its quarterly revenue missed estimates. Uber Technologies Inc. fell after SoftBank Group Corp. was said to be selling $2.1 billion of its stake in the ride-hailing giant in a block trade through Goldman Sachs.

The Stoxx 600 Europe Index closed at its highest level ever after updates from Royal Dutch Shell Plc and Airbus SE. In Asia, a Hang Seng tech index surged on a report that China will continue to allow local firms to go public in the U.S.

Bitcoin slipped below $40,000.

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Here are the main moves in the markets:

Stocks

– The S&P 500 rose 0.4% as of 4:04 p.m. EDT

– The Nasdaq 100 rose 0.2%

– The Dow Jones industrial average rose 0.4%

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– The MSCI World index rose 0.9%

Currencies

– The Bloomberg Dollar Spot Index fell 0.4%

– The euro rose 0.4% to $1.1888

– The British pound rose 0.4% to $1.3964

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– The Japanese yen rose 0.4% to 109.47 per dollar

Bonds

– The yield on 10-year Treasuries advanced four basis points to 1.27%

– Germany’s 10-year yield was little changed at -0.45%

– Britain’s 10-year yield was little changed at 0.57%

Commodities

– West Texas Intermediate crude rose 1.7% to $73.61 a barrel

– Gold futures rose 1.6% to $1,832.60 an ounce

Published : July 30, 2021

By : Syndication Washington Post, Bloomberg · Richard Richtmyer, Vildana Hajric

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40003920

SET barely moves despite good day for Asian stocks

The Stock Exchange of Thailand (SET) Index closed at 1,537.78 on Thursday, up 0.15 points or 0.01 per cent. Transactions totalled THB79.54 billion with an index high of 1,545.08 and a low of 1,533.94.

In the morning session, Krungsri Securities predicted the index would fall to between 1,520 and 1,530 points after the US Federal Reserve kept its interest rate at 0.25 per cent and maintained its quantitative easing programme.

Krungsri added that the SET would be under pressure from rising domestic Covid-19 cases and the outflow of foreign funds.

“However, the index would rebound from mass buy-ups of stocks with positive sentiment, such as shares related to exports and businesses whose second-quarter turnover is expected to improve,” it said.

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The 10 stocks with the highest trade value today were DTAC, KBANK, ADVANC, PTT, SCGP, AOT, GUNKUL, CPF, AS and KCE.

Other Asian indices were on the rise:

Japan’s Nikkei Index closed at 27,782.42, up 200.76 points or 0.73 per cent.

China’s Shanghai SE Composite Index closed at 3,411.72, up 50.13 points or 1.49 per cent, while the Shenzhen SE Component Index closed at 14,515.32, up 428.90 points or 3.04 per cent.

Hong Kong’s Hang Seng Index closed at 26,315.32, up 841.44 points or 3.30 per cent.

South Korea’s KOSPI closed at 3,242.65, up 5.79 points or 0.18 per cent.

Taiwan’s TAIEX closed at 17,402.81, up 267.59 points or 1.56 per cent.

Published : July 29, 2021

By : The Nation

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40003914

China will only let pristine, Covid-free Thai fruit across its borders

Thai fruit exporters sending shipments to China were warned on Thursday to employ strict measures to ensure their products are not contaminated.

Pichet Viriyapaha, director-general of the Department of Agriculture, said China had tightened measures to contain the spread of Covid-19.

He added that all truck drivers will have to undergo Covid-19 tests at each checkpoint, especially the Mohan checkpoint on the border of China’s Yunnan province.

Chinese importers have been told to ensure Thai exporters disinfect their trucks and product packages before entry.

“If the driver tests positive or signs of the virus are detected on the fruits for the first time, the shipment will be blocked from entering for 10 to 15 days. But the exporter will be banned permanently if this occurs again,” he added.

“Hence, we want to warn exporters to strictly implement Covid-19 prevention measures in each process and ensure their products are not contaminated by the virus.”

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China will only let pristine, Covid-free Thai fruit across its borders

He added that the South of Thailand has entered its fruit export season and a lot of durian and mangosteen will be heading overseas in August.

“We have boosted personnel at each checkpoint and extended their working hours to ensure no products are contaminated.

Published : July 29, 2021

By : The Nation

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40003901

SET being squeezed by rising virus cases, fund outflows, but likely to rebound

The Stock Exchange of Thailand (SET) Index rose by 2.51 points or 0.16 per cent to 1,540.14 on Thursday morning.

Krungsri Securities predicted the index would fall to between 1,520 and 1,530 points despite the US Federal Reserve maintaining its interest rate at 0.25 per cent and continuing with its quantitative easing programme.

It also predicted that the index would be under pressure due to rising domestic Covid-19 cases and the outflow of foreign funds.

“However, the index would rebound from mass buy-ups of stocks which gained positive sentiment, such as export shares and shares whose second-quarter business turnover was expected to improve,” Krungsri Securities said.

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It recommended investors buy:

▪︎ Hana, KCE, TU, CPF, Asian and EPG, which benefit from a weakening baht.

▪︎ BCH, CHG, BDMS, HMPro, Global, DoHome, BEM, CKP, CBG, OSP, Ichi, GPSC, BEC, Gunkul, JWD, Wice, Sonic and NER, whose second-quarter business turnover is expected to improve.

The SET Index closed at 1,537.63 on Tuesday, down 7.47 points or 0.48 per cent. Transactions totalled THB70.26 billion with an index high of 1,551.43 and a low of 1,531.81.

The index was closed on Wednesday for His Majesty the King Rama X’s birthday.

Published : July 29, 2021

By : The Nation

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40003899

Worsening Covid-19 situation to weigh on baht: bank strategist

The baht opened at 32.82 to the US dollar on Thursday, strengthening from Tuesday’s closing rate of 32.97.

The Thai currency is likely to move between 32.75 and 32.90 during the day, Krungthai Bank market strategist Poon Panichpibool said.

Poon said the baht strengthened mostly due to a weakening US dollar. However, the Thai currency was unlikely to strengthen substantially soon due to the worsening Covid-19 situation in Thailand, he said.

Foreign investors were still offloading their assets, such as stocks in Thailand, which would lead to a weakening of the baht, he predicted.

But Poon believed the Thai currency would not weaken below 33 per US dollar if investors felt “safe” from the worldwide Covid-19 situation and hence did not need to hold onto safe-haven assets.

Published : July 29, 2021

By : The Nation

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40003897

Gold price advances in morning trade

The price of gold rose by THB200 per baht weight in morning trade on Thursday.

AGold Traders Association report at 9.27am showed the buying price of a gold bar at THB28,150 per baht weight and selling price at THB28,250, while gold ornaments cost THB27,636.68 and THB28,750, respectively.

At close on Wednesday, the buying price of a gold bar was THB27,950 per baht weight and selling price THB28,050, while gold ornaments cost THB27,439.60 and THB28,550, respectively.

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The spot gold price on Thursday was US$1,815 (THB59,663) per ounce after Comex gold on Wednesday dropped by 10 cents to $1,799.70 per ounce as investors delayed purchases to await results of a key US Federal Open Market Committee meeting.

The Hong Kong gold price meanwhile rose by HK$80 to $16,790 (THB70,980) per tael, the Chinese Gold and Silver Exchange Society reported.

Published : July 29, 2021

By : The Nation

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40003896

Bloomberg Data Shows Record Number of ASEAN IPOs in 2021, Despite COVID-19

Singapore, July 29, 2021 – Companies in Southeast Asia raised a record $4.9 billion through initial public offerings (IPOs) in the first six months of 2021, based on Bloombergs latest equity capital markets data. $4.1 billion was raised through additional and rights offerings. The amount raised by these companies through the equity capital markets jumped 50% compared to the same period in 2019, prior to the Covid-19 pandemic.

By deal count, Indonesia led the region with 23 companies listing shares on the Indonesia Stock Exchange in the first half of 2021. Indonesia is on track for a record year, with its biggest listing in a decade, the $1.5 billion IPO of Bukalapak.com launching in July 2021.

By amount raised, Thailand topped the table, accounting for 57% of the amount raised from offerings in Southeast Asia at $2.8 billion, fuelled by the listings of PTT Oil & Retail Business PCL and microfinance lender Ngern Tid Lor PCL. The Philippines was in the second spot with $1.3 billion raised, followed by Indonesia’s $503 million.

These newly-listed Southeast Asian IPOs recorded an average return of 59% on their first month of trading. In comparison, the best performing index in Southeast Asia, the Straits Times Index, returned 11% in the first half this year.

Oil & Gas, Food and Diversified Financial Services were the top three sectors that raised funds through IPOs, contributed mainly by the two big IPOs in Thailand and Monde Nissin Corp in Philippines. These three companies raised about $1 billion each.

“About one third of companies declared that they will use part of the funds raised to repay debt or loans. This is a marked increase from less than 5% of companies using their proceeds for refinancing in the same period last year and 19% in 2019,” said Vatsan Sudersan, APAC Head of Global Data, Bloomberg.

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Southeast Asian companies are poised to resume record bonds issuance that was disrupted by Covid-19 last year. $84.2 billion of corporate bonds were issued in the first six months this year, with Malaysia accounting for a third of the issuance.

“We continue to see companies tapping the debt markets to raise capital in this region. We have seen less bond defaults as government measures have helped businesses weather a liquidity crunch. Investors should monitor current restructured loans to see how much will be converted into banks’ Non-performing Loans (NPL) or be written off, post government support. Investors should continue to watch the debt-to-equity ratio of companies to gauge their ability to pay off or take on more debt. In the medium term, investors should review the investment in companies’ capital expenditures and the impact of that in revenue growth to determine their sustainability,” Sudersan added.

Published : July 29, 2021

By : The Nation

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40003882

Stocks rally, bonds turn higher as Fed holds rates

U.S. equities advanced and Treasury yields fell after the Federal Reserve held interest rates near zero and Chairman Jerome Powell said that despite the economys progress he was still “a ways away” from raising them.

The Nasdaq 100 and S&P 500 advanced following the announcement, with Alphabet Inc. giving the biggest boost to both indexes after it reported sales that beat estimates. The Dow Jones industrial average fell, with a drop in McDonald’s Corp. weighing heavily after its earnings release. Ten-year Treasury yields fell 1 basis point to 1.23% after climbing to as high of 1.27%.

While strong earnings have been bolstering confidence in the corporate recovery, investors have remained nervous about the threat to global growth from the covid-19 delta variant and the potential for tighter monetary policy. The Fed, in its statement released after a two-day policy meeting on Wednesday, kept the benchmark policy rate near zero and repeated language that inflation had run persistently below its long-run 2% goal.

“While the economy appears to be inching closer, the Fed has not yet seen sufficiently outsized data to warrant a meaningful policy change,” said Greg Bassuk, chief executive officer at AXS Investments LLC. “As a result, we expect the markets to remain volatile in the near-term, driven largely by this season’s remaining corporate earnings announcements, key upcoming economic data reports and the pace of progress in curtailing the global pandemic.”

News that a bipartisan Senate group had agreed on a broad infrastructure deal for spending on projects like roads and bridges lifted stocks like Caterpillar Inc. and Vulcan Materials Co., which rose as much as 4%, the most since May.

Large-cap China stocks listed in the U.S. rebounded after Chinese state media attempted to reassure investors about the market’s stability. In Asia, the Hang Seng Index reversed losses after coming close to entering a bear market. China’s securities regulator held a video conference with executives of major investment banks on Wednesday in an attempt to ease market fears.

A five-day rally that pushed major U.S. equity indexes to all-time highs paused on Tuesday as Alphabet, Apple Inc. and Microsoft Corp. prepared to release their earnings. While Alphabet gave the biggest lift to the tech-heavy Nasdaq 100 on Wednesday, Apple weighed it down the most after the iPhone maker warned that its sales growth could be slowing. Microsoft was fluctuating between gains and losses after its report. Meanwhile, Facebook Inc. closed at a record high before its postmarket earnings release.

“This is the time, as we get past the pandemic, get past all of the fiscal and monetary support, that really you need to know which companies that you’re investing in,” Seema Shah, chief strategist at Principal Global Investors, said on Bloomberg TV. “Do they have very strong balance sheets? Do they have a strong customer base? And I think what we’re seeing with the big tech, they’re proving again this week is that’s exactly what they have.”

Earnings also drove moves in other major U.S. stocks. Boeing Co. climbed after its posting its first profit since 2019. Starbucks Corp. dropped on slowing China growth. Advanced Micro Devices Inc. climbed to an all-time high after the chipmaker raised its outlook for full-year revenue growth. McDonald’s fell for the first time in seven sessions on concern about its outlook for margins.

So far, almost 90% of the S&P 500 companies that have reported second-quarter results have exceeded analysts’ earnings estimates, according to data compiled by Bloomberg.

For more market analysis read our MLIV blog.

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Here are the main moves in the markets:

Stocks

– The S&P 500 was little changed as of 3:52 p.m. EDT

– The Nasdaq 100 rose 0.5%

– The Dow Jones industrial average fell 0.3%

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– The MSCI World index rose 0.3%

Currencies

– The Bloomberg Dollar Spot Index fell 0.2%

– The euro rose 0.2% to $1.1845

– The British pound rose 0.2% to $1.3905

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– The Japanese yen was little changed at 109.88 per dollar

Bonds

– The yield on 10-year Treasurys declined one basis point to 1.23%

– Germany’s 10-year yield was little changed at -0.45%

– Britain’s 10-year yield advanced two basis points to 0.57%

Commodities

– West Texas Intermediate crude rose 0.8% to $72.22 a barrel

– Gold futures rose 0.4% to $1,811.40 an ounce

Published : July 29, 2021

By : Syndication Washington Post, Bloomberg · Richard Richtmyer, Vildana Hajric, Kamaron Leach

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40003877

Biden proposes stronger Buy American rules for federal government, aiming to bolster U.S. industry

LOWER MACUNGIE TOWNSHIP, Pa. – President Joe Biden on Wednesday proposed strengthening the federal governments Buy American rules in what the administration is calling an effort to bolster domestic manufacturing.

The proposal, made public earlier Wednesday, would require that goods purchased with taxpayer dollars contain 75% U.S.-made content by 2029, up from a current threshold of 55%, according to a fact sheet released by the White House.

The threshold would rise to 60% once the rule goes into effect, and then gradually grow to 75%.

The president made his case to boost U.S. manufacturing at a truck manufacturing facility just outside Allentown, Pa., meeting factory workers and touting his administration’s new rules.

“In recent years, ‘Buy America’ has been a hollow promise,” Biden said in remarks at the Mack Trucks Lehigh Valley Operations center in this eastern Pennsylvania town, before a crowd of more than 100 people, including the facility’s employees and union members. “But my administration is going to make ‘Buy American’ a reality, and I’m putting the weight of the federal government behind that commitment.”

During his remarks, Biden said his administration was making the “biggest enforcement changes” to the Buy American Act – a 1930s-era law that calls on the federal government to purchase materials and products domestically – in seven decades.

The new rule would also enhance federal efforts to buy domestically produced goods deemed critical, such as semiconductors and medical supplies. And it would require contractors to report more data on the U.S.-made content of the goods they purchase.

“Instead of taking contractors at their word that they’ve hit the threshold, we’re going to start making them give us the details so that we can do more to support American” manufacturing, Biden said.

He added, “Today, I’m placing my bet on America.”

The proposal is subject to a 60-day comment period to allow industry and the public to weigh in, after which the administration will work on a final rule.

The federal government spends about $600 billion a year on goods and services, almost half of which is dedicated to manufactured products, including helicopter blades, trucks and office furniture.

Its massive budget makes it the single largest purchaser of consumer goods in the world, the administration said.

“Leveraging that purchasing power to shape markets and accelerate innovation is a key part of the Biden industrial strategy to grow the industries of the future to support U.S. workers, communities, and firms,” the administration said in its fact sheet.

“As the pandemic has demonstrated, federal procurement can strengthen the resiliency of domestic supply chains, and reduce the risk of Americans being adversely impacted by the actions of competitor nations during a time of crisis,” it said.

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In January, the Biden administration took additional steps to force the government to buy more domestically manufactured goods, via an executive order that tightened the definition of U.S.-made products and created a position in the Office of Management and Budget to oversee stepped-up purchases of domestic goods.

Published : July 29, 2021

By : The Washington Post · Seung Min Kim, Jeanne Whalen

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40003876

Powell says waves of covid cases have had fewer economic repercussions as uncertainty rises around delta variant

Federal Reserve Chair Jerome Powell on Wednesday said that the delta variant of the coronavirus could have fewer implications for the economy, if it follows the pattern of past waves of covid surges.

“With delta, we’re just going to have to watch,” Powell said at a news conference Wednesday. “With a reasonably high percentage of the country vaccinated, and the vaccine apparently being effective – we’re not experts on this but – it seems like a good, going-in estimate would be that the effects will probably be less. There probably won’t be significant lockdowns.”

Powell said it was “plausible” that the delta variant, which is rapidly spreading among unvaccinated people, could discourage people from dining out or traveling, or delay school reopenings. But Powell said that vaccinations, and society’s ability to adjust to life in a pandemic, may offer a cushion from harsh economic strain.

Powell said that the surge in covid cases last winter did have major effects on the labor market, especially in industries that depend on person-to-person contact.

But he added that businesses and consumers have found ways to continue on, saying “we’ve kind of learned to live with it.” He gave the example of businesses that can sell houses virtually, or restaurants that can fill no-contact takeout orders.

Powell’s comments come at a highly uncertain time for the economy. Public health officials, economic policymakers and others are grappling with the rapidly-spreading delta variant and the need to get more people vaccinated.

On Tuesday, the Centers for Disease Control and Prevention walked back recent recommendations for vaccinated Americans, saying they should wear masks indoors if they live in covid hotspots, or if they live with anyone immunocompromised, or with children who are not old enough for the vaccines. President Joe Biden will announce Thursday that all federal employees will be required to be vaccinated against the coronavirus or face repeated testing mandates.

Many parts of the economy appear to be headed in the right direction, and it is not yet clear if this recent wave of cases will thwart broader expectations for growth in 2021. Economists and policymakers hoped that more widespread vaccinations would help consumers unleash their pent-up savings, step back into their old routines and, in turn, bring back jobs in hard-hit industries.

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Fed leaders also offered an early signal that progress was moving in the right direction for the Fed to eventually ease its support for the markets. In the coming months, the Fed may give more direct guidance on how and when it plans to scale back $120 billion a month in asset purchases, including $80 billion in Treasury debt and $40 billion in mortgage-backed securities. Any policy changes, including eventual interest rate hikes, will depend on how the economy and labor market heal from the recession’s depths.

Even with progress, Powell said “the labor market has a ways to go,” noting that the June unemployment rate of 5.9 person is an understatement. He said that caregiving needs, ongoing fears of the virus and unemployment insurance payments appear to be weighing on job growth, especially as people reevaluate what kinds of jobs they was altogether.

At the conclusion of its two-day policy meeting, the Fed also announced the establishment of two standing repurchase agreement facilities to serve as backstops in the markets.

Meanwhile, inflation is a particularly complicated feature of the economic recovery, and it’s posing a major test for Fed officials.

Fed leaders and the Biden administration say inflation is temporary and that it’s isolated to parts of the economy hurt by the pandemic. They say that as supply chains clear their bottlenecks, and consumer demand eases, prices will fall back down.

Yet Republicans and some prominent economists say inflation is already at worrisome levels. Their fear is that the Fed will be too late by the time it decides to raise interest rates, and that any sudden hikes could spur another recession.

While the Fed isn’t yet seeing widespread inflation pulsing through the whole economy, Powell has been clear that Fed leaders would change course, if they saw cause for concern.

“As the reopening continues, bottlenecks, hiring difficulties and other constraints could continue to limit how quickly supply can adjust, raising the possibility that inflation could turn out to be higher and more persistent than we expect,” Powell said.

Published : July 29, 2021

By : The Washington Post · Rachel Siegel