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https://www.nationthailand.com/business/40001852

Stocks grasp for record, bonds rally ahead of CPI

U.S. stocks traded near record highs and bonds rallied as investors braced for a key inflation report that could provide clues on the direction of monetary policy.

The S&P 500 fluttered around its May 7 record closing level, with megacap technology and biotech stocks lifting the benchmark index. The 10-year Treasury yield retreated below 1.5% before an afternoon auction of the notes.

Equities have been trading in a tight range and Treasury yields have been easing in recent weeks as investors who believe accelerating inflation will be short-lived clash with those those who bet it will prove persistent enough to warrant tightening. For now, the Fed’s dovish stance is calming the markets.

“Even if inflation comes out a little higher than Street expectations tomorrow, the Fed isn’t going to change its path,” said Esty Dwek, head of global market strategy at Natixis Investment Managers, said in a Bloomberg TV interview. “There’s a lot of wait-and-see going on and really just thinking it would take a lot to really surprise markets.”

Seven of the main 11 S&P 500 industry groups advanced, led by health-care stocks. Johnson & Johnson, Merck & Co., Pfizer and Eli Lily were among the biggest contributors to the broader index’s advance. Biogen resumed a rally two days after getting regulatory approval for its Alzheimer’s drug. Bitcoin rose more than 8%, trading above $36,000.

The 10-year U.S. Treasury yield declined as much as 6.3 basis points to 1.471%, which is below closing levels since March even as dealers prepared to underwrite an auction of $38 billion of the notes Wednesday afternoon. The 30-year bond’s yield touched 2.148%, last seen March 1.

Meanwhile, a rally in commodities has stalled with global recovery remaining patchy, especially with the pandemic still spreading in the developing world. The Bloomberg Commodity Index, which shows returns on a basket of raw materials, fell 0.2%.

Shares edged up in China, where a measure of producer prices for May was at the highest since 2008 but consumer-price gains remained subdued. The nation is also considering imposing a cap on the price of thermal coal to contain high energy costs.

U.K. property developers posted some of the biggest losses in europe weeks before a stamp-duty exemption was due to expire and demand was seen moderating.

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Stocks:

– The S&P 500 rose 0.1% as of 12:41 p.m. New York time.

– The Nasdaq 100 rose 0.4%.

– The Dow Jones Industrial average fell 0.1%.

– The MSCI World index was little changed.

Currencies:

– The Bloomberg Dollar Spot Index rose 0%.

– The euro was little changed at $1.2177.

– The British pound fell 0.3% to $1.4115.

– The Japanese yen fell 0.1% to 109.63 per dollar.

Bonds:

– The yield on 10-year Treasuries declined three basis points to 1.50%.

– Germany’s 10-year yield declined two basis points to -0.24%.

– Britain’s 10-year yield declined four basis points to 0.73%.

Commodities:

– West Texas Intermediate crude fell 0.7% to $70 a barrel.

– Gold futures were little changed.

Published : June 10, 2021

By : Syndication Washington Post, Bloomberg · Vildana Hajric

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40001843

SET climbs more than 13 points amid Thai jab rollout

The Stock Exchange of Thailand (SET) Index closed at 1,626.27 on Wednesday, up 13.39 points or 0.83 per cent. Transactions totalled THB94.10 billion with an index high of 1,628.42 and a low of 1,617.83.

In the morning session, Krungsri Securities expected Wednesday’s index to fluctuate between 1,605 and 1,625 points amid the rising oil price and hopes for Thai economic recovery after mass vaccination commenced nationwide.

However, it said uncertainty over rising inflation and volatility in foreign fund flows would pressure the index.

“Investors should follow the US Consumer Price Index [CPI] for May, which will be announced on Thursday,” Krungsri Securities said, adding that the CPI is expected to rise by 4.7 per cent.

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The 10 stocks with the highest trade value today were KBANK, EA , IVL, HANA, ADVANC, KCE, AOT, BBL, SCB and OR.

Other Asian indices were mixed:

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Japan’s Nikkei Index closed at 28,860.80, down 102.76 points or 0.35 per cent.

China’s Shanghai SE Composite Index closed at 3,591.40, up 11.29 points or 0.32 per cent, while the Shenzhen SE Component Index closed at 14,718.40, up 1.42 points or 0.0096 per cent.

Hong Kong’s Hang Seng Index closed at 28,742.63, down 38.75 points or 0.13 per cent.

South Korea’s KOSPI closed at 3,216.18, down 31.65 points or 0.97 per cent.

Taiwan’s TAIEX closed at 16,966.22, down 109.99 points or 0.64 per cent.

Published : June 09, 2021

By : The Nation

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40001829

PM asks economic team to study G7 move on reforming global tax

Prime Minister Prayut Chan-o-cha has instructed his economic team to study the effects as well as opportunities from the G7’s move to reform global corporate tax, government spokesperson Anucha Burapachaisri said on Tuesday.

The G7 group of advanced economies announced a historic accord on Saturday to set a minimum global corporate tax rate, taking the first step in reversing a four-decade decline in taxes paid by multinational corporations.

The deal reached at the G7 meeting in London by Canada, France, Germany, Italy, Japan, the United Kingdom and the United States is a major breakthrough for the Biden administration’s efforts to get corporations worldwide to cough up tax owed to the state.

In this regard, Prayut said the move may be both a boost and bane on Thailand’s move to attract foreign investments, including in the Eastern Economic Corridor.

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“Hence, the economic team, like Finance Minister Arkhom Termpittayapaisith and National Economic and Social Development Council secretary-general Danucha Pichayanan, have been instructed to study the effects as well as investment opportunities from the G7’s move and report back to the Cabinet later,” Anucha said.

“The prime minister also said other groups apart from the G7 are currently discussing economic reforms, so Thailand must monitor, adjust and improve regulations to increase competency in line with changes in the future,” Anucha added.

Published : June 09, 2021

By : The Nation

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40001827

Baht unchanged in opening trade

The baht opened at 31.21 to the US dollar on Wednesday, unchanged from its closing rate on Tuesday.

The Thai currency is likely to move between 31.15 and 31.25 during the day, Krungthai Bank market strategist Poon Panichpibool said.

He explained that the baht could strengthen at most to 31.30 per US dollar and at this point exporters would want to sell their dollars. Meanwhile, importers would aim to buy foreign currencies – especially the dollar – when the baht moved to between 31 and 31.10, he said.

“The baht will continue moving in a narrow range if there is no new market factor to influence it,” Poon added.

Published : June 09, 2021

By : The Nation

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40001826

SET expected to fluctuate on rising oil price, mass vaccinations

The Stock Exchange of Thailand (SET) Index rose by 7.55 points or 0.47 per cent to 1,620.43 at 10am on Wednesday. The volume of transactions was THB4.02 billion with an index high of 1,621.44 points and a low of 1,617.83.

Krungsri Securities predicted the index on Wednesday would fluctuate between 1,605 and 1,625 points amid the rising oil price in line with higher fuel demand and hopes for a Thai economic recovery after mass vaccinations commenced nationwide.

However, it said uncertainty over rising inflation and volatility in foreign fund flows would pressure the index.

“Investors should follow the US Consumer Price Index [CPI] in May, which will be announced on Thursday,” Krungsri Securities said, adding that the CPI is expected to rise by 4.7 per cent.

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It recommended investors buy:

▪︎ PTT, PTTEP, PTTGC, Top, IVL and Banpu, which would benefit from a global economic recovery.

▪︎ BCH, CHG, BDMS, Mint, Centel, ERW, AOT, CPAll, HMPro, CPN, CRC and AAV, which would benefit from the country reopening.

▪︎ KCE, IRPC, STA and STGT, expected to be listed on the SET50 Index in mid-June.

▪︎ AAV, BLA, ICHI, PSL, PTL, Singer, Stark, STGT and Synex, expected to be listed on the SET100 Index in mid-June.

The SET Index closed at 1,612.88 on Tuesday, up 0.29 points or 0.02 per cent. Transactions totalled THB100.25 billion with an index high of 1,618.70 points and a low of 1,605.31.

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Published : June 09, 2021

By : The Nation

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40001823

Gold drops on stronger dollar, robust US economic data

The price of gold dropped by THB50 per baht weight in morning trade on Wednesday due to a strengthening dollar and strong US economic data.

AGold Traders Association report at 9.22am showed the buying price of a gold bar at THB27,800 per baht weight and selling price at THB27,900, while gold ornaments cost THB27,303.16 and THB28,400, respectively.

At close on Tuesday, the buying price of a gold bar was THB27,850 per baht weight and selling price THB27,950, while gold ornaments cost THB27,348.64 and THB28,450, respectively.

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The spot gold price on Wednesday was US$1,892 (THB58,929) per ounce compared to the price on Tuesday, when it dropped by $4.40 to $1,894.40 per ounce.

The Hong Kong gold price on Wednesday dropped by HK$60 to $17,530 (THB70,369) per tael, the Chinese Gold and Silver Exchange Society reported.

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Published : June 09, 2021

By : The Nation

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40001816

Trudeau urged by U.S., Canada businesses to open border this month

Business groups are calling on the Canadian and U.S. governments to relax border restrictions for vaccinated travelers this month, increasing pressure on Justin Trudeau to act swiftly.

Chambers of commerce on both sides of the border, along with other groups, want travelers who’ve been fully inoculated against Covid-19 to be able to cross the border without having to show a negative test or undergo a quarantine, a letter to be released Tuesday said. The groups want these changes to take effect on June 22, a day after the pact that limits non-essential travel between the two countries is due for renewal, according to the letter, which was reported first by Bloomberg News.

Trudeau is expected to shorten the existing two-week quarantine requirement for vaccinated travelers in coming days, Bloomberg News reported Monday. Tests would still be required, people familiar with the plans said, suggesting the initial Canadian move will fall short of the business groups’ demands.

Easing restrictions this month “to take account of rising vaccination levels would sustain jobs, boost business confidence and allow more families to reunite,” the groups said. “It would help facilitate a safe and gradual return to a more normal life.”

Signatories to the letter include the Canadian and U.S. chambers of commerce, the Retail Council of Canada, the National Retail Federation in the U.S., the Business Council of Canada, industry group the Canadian Manufacturers & Exporters and the Canadian Council for Aboriginal Business.

Every month since March 2020, Canada and the U.S. have extended the border restrictions to curb the spread of Covid-19. Now with summer around the corner and vaccination rates rising, lawmakers on both sides of the border are facing calls to lay out a plan for reopening.

A new poll conducted by Nanos Research Group for Bloomberg News shows Canadians are becoming more receptive to reopening the U.S. border. While 53% of respondents remain somewhat uncomfortable with easing restrictions on U.S. travel, that’s down from closer to 80% earlier in the pandemic.

Some travel and tourism businesses say it’s urgent. “Our occupancy rate has been a little lower than 20%. I don’t think we’ll be able to do many more months like this,” Christiane Germain, co-president of the Quebec-based Germain Hotels chain, said in an interview on BNN Bloomberg Television.

“We need to have goals in order to open up the border. We need to know what the vaccination rate should be in order to open up the borders. I think it would be an incentive to get vaccinated,” Germain said.

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U.S. and Canadian government officials began discussions to loosen restrictions on the world’s longest undefended border earlier this year. The border between the two nations has been closed to most non-essential travel since the start of the pandemic.

The restrictions have hit Canada’s tourism and airline sectors particularly hard. One estimate says the measures cost those industries about C$20 billion ($16.5 billion) in revenue last year. Trade data released by Statistics Canada on Tuesday shows spending by foreign travelers to Canada fell to C$889 million in April, near the decade-low levels seen earlier in the pandemic.

In addition to removing the Covid-19 test and quarantine requirements, the business groups are also asking the Canadian and U.S. governments to mutually recognize vaccine credentials to support the movement of inoculated citizens and produce a plan that includes clear guidelines for all other travelers.

Published : June 09, 2021

By : Syndication Washington Post, Bloomberg · Shelly Hagan, Kait Bolongaro

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40001815

World Bank sees strongest rebound in 80 years despite divergence

Emerging market and developing nations will continue to struggle with the Covid-19 pandemic and its aftermath even as a few major economies spur the strongest post-recession global growth in 80 years, the World Bank said.

Global gross domestic product will expand 5.6% this year, up from 4.1% forecast in January, the Washington-based development organization said in its semi-annual Global Economic Prospects report. That will be fueled largely by a 6.8% expansion in the U.S. and 8.5% in China. The World Bank revised its historical data to reflect updated GDP weights.

Though most advanced nations are projected to return to their pre-pandemic per-capita income levels in 2022, two-thirds of emerging and developing nations are projected to remain below it. Growth in low-income countries is expected to be the second-slowest of the past 20 years at 2.9% — down from the 3.4% forecast in January, held back by lack of access to vaccines.

“It’s the tale of two recoveries,” Ayhan Kose, director of the World Bank group that produced the report, said in an interview. “On the one hand, advanced economies, big countries, are delivering fast growth, record growth. On the other hand, you have these low-income countries struggling to generate growth.”

The World Bank warned of substantial uncertainty beyond 2021.

The global recovery could falter once policy support is withdrawn and pent-up demand runs out, particularly if the pandemic lingers, according to the report. Sustained inflation pressures could cause a tight sharpening in financial conditions, adding to high debt vulnerabilities.

Under these circumstances, activity in both advanced and emerging and developing economies could slow global growth to 2.7% in 2022 and 2.1% in 2023. That would leave the recovery on par with the anemic one that followed the global financial crisis of 2008-2009.

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On the other hand, the global rebound could prove stronger than expected if the surge in growth in 2021, together with faster and more equitable distribution of vaccinations worldwide, spur expansion in the private sector.

To help ensure the best outcome, policy makers should seize the moment of benign global conditions to implement overhauls that increase the resilience of financial systems, improve fiscal sustainability and create the foundations for a green, resilient and inclusive recovery, the World Bank said.

Other highlights from the report:

– While global inflation is likely to keep rising this year after a rebound in the first half of 2021, it probably will remain within target bands in most countries.

– While half of inflation-targeting emerging market and developing economies could see inflation above target ranges, it may be temporary and not warrant a policy response if expectations remain well-anchored.

– Due to record-high debt, emerging and developing countries remain vulnerable to financial market stress, if investor risk sentiment worsens due to actual or perceive inflation pressures in advanced economies.

– Higher global agricultural prices are likely to present inflation pressures for low-income countries in the near term, worsening food insecurity and threatening to increase poverty.

– Attempts to lower food prices through subsidies or export controls risk driving global food prices higher.

Published : June 09, 2021

By : Syndication Washington Post, Bloomberg · Eric Martin

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40001812

Stocks close near record with CPI, Fed in focus

U.S. equities closed within a hairs breadth of a record high and Treasuries rose as investors continued to debate the impact of resurgent inflation on monetary policy.

The S&P 500 ended little changed less than 6 points below its May 7 record close after fluctuating between gains and losses throughout the session. The 10-year Treasury yield fell to the lowest in a month, with focus turning toward Thursday’s consumer-price data that may offer clues on how far the Federal Reserve can postpone a tapering of stimulus.

Megacap tech stocks including Amazon.com Inc., Apple Inc. and Alphabet Inc. helped prop up the benchmark index, which has gained 13% in 2021. Biotechs were among the biggest drags on Tuesday, a day after many of them rallied after Biogen Inc. received regulatory approval for its Alzheimer’s disease drug. Bitcoin slumped to a two-week low, with some analysts pointing to the recovery of Colonial Pipeline Co.’s ransom as evidence that crypto isn’t beyond government control.

U.S. equities have traded in a relatively tight range around record highs in recent weeks as investors try to balance the economic recovery and a dovish Fed against inflation concerns, high valuations and disparities in global coronavirus vaccine rollouts. Volatility has returned to the market ahead of the CPI report and the Fed’s rate decision next Wednesday.

“You look across the board and everything is more expensive,” said Brian Walsh, Jr., senior financial adviser at Walsh & Nicholson Financial Group. “It’s something we’re watching, but the Fed has continued to say they are gong to keep interest rates at bay regardless of the inflation data that comes in. You can only take them for their word and I think that’s what investors are doing.”

Global equities also are near record highs, and Treasury yields have eased for three successive weeks. That suggests the Fed’s assurances are calming fears of Fed tightening for now. Yet on Tuesday, traders were exercising caution before the inflation data, pushing the dollar toward its first gain in three days.

“The tight trading ranges seen so far this month reflect the cautious mood in the market ahead of the inflation numbers,” said Fiona Cincotta, senior financial markets analyst at City Index. “Whilst the Fed reassures that this spike in inflation is temporary, policymakers will need to be out in their droves to calm the market. Delaying action or even inaction could cause economic disruption that the markets fear.”

West Texas Intermediate crude futures reversed a loss of as much as 1.1% on Tuesday, with investors focused on the health of the U.S. market ahead of inventory data on Wednesday. The Bloomberg Commodity Index rose to its highest level since 2015.

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These are some of the main moves in markets:

Stocks

– The S&P 500 was little changed as of 4:03 p.m. EDT

– The Nasdaq 100 was little changed

– The Dow Jones industrial average was little changed

– The MSCI World index was little changed

Currencies

– The Bloomberg Dollar Spot Index rose 0.1%

– The euro fell 0.1% to $1.2174

– The British pound fell 0.2% to $1.4156

– The Japanese yen fell 0.2% to 109.48 per dollar

Bonds

– The yield on 10-year Treasurys declined four basis points to 1.53%

– Germany’s 10-year yield declined three basis points to -0.22%

– Britain’s 10-year yield declined four basis points to 0.77%

Commodities

– West Texas Intermediate crude rose 1.4% to $70 a barrel

– Gold futures fell 0.2% to $1,896 an ounce

Published : June 09, 2021

By : Syndication Washington Post, Bloomberg · Claire Ballentine, Vildana Hajric