All eyes on U.S. jobs data for clues on the Fed’s direction

Recap: US equity futures rose yesterday as European markets were mixed as investors watched key Eurozone economic indicators and waited for a US jobs report that could determine when the Federal Reserve will begin to close. withdraw its economic stimulus.

Most Asia-Pacific stocks edged up while Chinese stocks declined amid concerns about slowing growth. In Tokyo, the Nikkei peaked in three decades after struggling Prime Minister Yoshihide Suga announced he would step down at the end of the month.

The SET index has evolved in a range of 1,621.42 and 1,657.79 points this week before closing yesterday at 1,650.33, up 2.4% from the previous week, for a figure of average daily business of 106.62 billion baht.

Foreign investors were net buyers of baht 9.87 billion and brokerage firms bought baht 1.12 billion of shares. Retail investors were net sellers of $ 10.52 billion and institutional investors offloaded Baht 474.68 million of shares.

Current actors: U.S. economic growth in the third quarter is expected to slow to 2.9% from 6.5% year-on-year in the second quarter, according to economists at Morgan Stanley, as stimulus spending and a surge in activity fueled by the reopening shrink. cool.

  • The number of Americans filing new jobless claims fell last week, as layoffs fell to their lowest level in 24 years in August, suggesting the labor market was advancing even as new infections. to Covid were increasing.
  • The administration of US President Joe Biden on Tuesday announced plans to open more than 80 million acres in the Gulf of Mexico for oil and gas exploration after a court ruled against the administration’s hiatus in leasing.
  • Japanese Prime Minister Yoshihide Suga is stepping down after less than a year in office. Mr Suga has told members of the ruling Liberal Democratic Party that he will not run in his leadership election later this month.
  • Chinese President Xi Jinping has announced plans to establish a new exchange in Beijing and more pilot digital commerce zones as part of plans to expand the country’s role as a global services hub.
  • China is considering proposing new rules that would ban companies with large amounts of sensitive consumer data from going public in the United States, sources say.
  • Beijing has launched a two-month campaign to crack down on business platforms and social media accounts that publish financial-related information deemed “harmful” to the Chinese economy.
  • Regional super-app Grab launches online supermarket in the Philippines as it tries to move beyond meal deliveries and carpooling to boost revenue.
  • Major Japanese airlines ANA and Japan Airlines plan to launch commercial drone services to deliver medical supplies and essentials to people living in remote areas of Japan.
  • Singapore has joined the growing list of countries cracking down on Binance. The world’s largest crypto exchange provides payment services to residents of Singapore without a proper license, the Monetary Authority of Singapore said Thursday.
  • Chinese company Sinopec Corp plans to spend 30 billion yuan ($ 4.6 billion) on hydrogen energy by 2025 as part of its drive to become a carbon-neutral energy supplier by 2050.
  • Forrest Li, the billionaire co-founder of Sea Ltd, the parent company of Shopee and gaming portal Garena, became Singapore’s richest person with a net worth of nearly $ 20 billion, while shares of his company surged.
  • Indonesia-led Southeast Asia has added 70 million new online shoppers since the pandemic began, according to an annual report from Facebook and Bain & Co.
  • The Hong Kong government faces increasing pressure from companies to open borders or risk losing talent and investment. But chief executive Carrie Lam has defended the three-week hotel quarantine, saying restrictions are needed to open up to the Chinese mainland.
  • Gold prices posted small gains this week, supported by a weaker dollar to rise above $ 1,810 an ounce, as investors waited for US employment data to assess how that might affect the Fed’s plans to cut stimulus.
  • Thailand’s economy in July was increasingly affected by the Covid outbreak and related restrictions, but fiscal policy and exports have provided some support, the Bank of Thailand said on Tuesday.
  • The public debt ceiling to 60% of GDP could be raised if necessary, estimates the head of a government committee which is developing a 5-year debt management plan. The debt-to-GDP ratio stood at 55.6% in July, down from 55.2% in June, and is expected to reach 58% by the end of fiscal 2021 on September 30.
  • Private investment declined in July due to the prolonged pandemic, but exports increased for the fifth consecutive month, the Office of Fiscal Policy said.
  • The manufacturing production index (MPI) in July rose 5.12% year on year for the fifth consecutive month to 91.41 points, thanks to the growth of exports.
  • The Federation of Thai Industries is working with the government and universities on bio, circular and green economic development (BCG) projects in five industries to help bring Thailand’s GDP to 4.4 trillion baht in six years.
  • The Bank of Thailand and the Thai Bankers Association announced on Friday that they will offer more support measures to debtors affected by the coronavirus pandemic.
  • The Bank of Thailand has introduced a new debt counseling program, Debt Doctor, to provide comprehensive financial advice to borrowers affected by the pandemic.
  • The Joint Standing Committee on Trade, Industry and Banking (JSCCIB) on Wednesday raised its economic forecast for 2021 to fall 0.5% to growth of 1%, from an earlier range of minus 1.5% to zero.
  • The Revenue Department expects around 100 foreign electronic service providers to register to pay value added tax (VAT) in Thailand under a new law that came into effect on September 1. So far, 69 foreign electronic service operators have registered, including 20 giants. operators of online platforms.
  • Siam Makro Plc shares jumped 24% after the country’s largest cash-and-carry store operator announced a $ 218 billion plan to take control of retailer Lotus from other Charoen group subsidiaries Pokphand.
  • Tourism and Sports Minister Phiphat Ratchakitprakarn defended the country’s plan to reopen, saying Bangkok and four other provinces – Chon Buri (Pattaya), Phetchaburi, Prachuap Khiri Khan (Hua Hin) and Chiang Mai – should be ready for international visitors vaccinated from October. .
  • Pattaya hopes to introduce quarantine-free travel for foreign visitors on sealed routes to increase its appeal. Hua Hin is also planning to reopen on October 1 with a no-quarantine approach similar to the Phuket sandbox.
  • The Phu Nam Rom border post in Kanchanaburi reopened on Wednesday for the transport of goods between Thailand and Myanmar. The government is in talks with neighboring countries to reopen as many checkpoints as possible to boost cross-border trade, which has been healthy despite the pandemic.
  • Thailand is expected to open up to Indian tourists after Covid infections on the subcontinent have dramatically improved, as pent-up demand begins to pour into other countries, according to the Tourism Authority of Thailand.
  • Rice exporters are increasingly concerned about the prospects for Thai Hom Mali rice due to high freight rates and increasing supplies. A global container shortage has tripled freight rates to the United States since before the pandemic.

Future : Britain will release construction activity for August on Monday. The Reserve Bank of Australia will announce its interest rate decision on Tuesday and Germany will release economic sentiment in September. The revised second quarter GDP data for the euro area and Chinese trade for August are also due on the same day.

  • Japan will release its second quarter GDP on Wednesday. The United States will publish the jobs in July and the Bank of Canada will announce its decision on interest rates.
  • The European Central Bank will announce its latest policy decisions on Thursday. Britain will release July manufacturing and industrial production and trade figures on Friday. Canada will release employment data in August.

Actions to watch out for: UOB Kay Hian Securities recommends communications stocks and REITs as defensive games amid growing market concern over weak second half earnings. It recommends gradually accumulating communication stocks such as ADVANC, DTAC, FTREIT and WHART, utility stocks such as GULF, GPSC, EGCO, RATCH, EASTW, WHAUP and TTW, and food and agricultural stocks such as TVO , TU, CPF, GFPT and TWPC. He also recommends speculating on shipping stocks such as PSL, TTA and RCL, and packing groups such as SCGP and BGC.

Yuanta Securities recommends stocks of companies that have raised their forecasts or whose target prices have been adjusted after the second quarter earnings announcements, but are still cheap, like SCC, SYNEX and SC. Stocks expected to benefit from easing lockdowns with relatively low prices include AMATA, BAM and WHA.

Technical view: Capital Nomura Securities sees support at 1621 points and resistance at 1660. Thanachart Securities sees support at 1632 and resistance at 1668.

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