1) Thai stock market overview
Thailand’s SET Index closed at 1,667.74 points, increased 5.85 points or 0.35% with a trading value of 79 billion baht. The analyst stated that the Thai stock market rebounded in the same movement as global markets after pricing in the Fed’s rate hike, while positive 1Q22 earnings in the U.S. tech stocks gave a push to the market.
The analyst expected the Thai stock market to move in sideways trends next week to wait and see the Fed’s meeting, giving a support level at 1,660 points and a resistance level at 1,6860 points.
2) Thailand’s MPI slips in March, but continues on path to recovery
Thailand’s Manufacturing Production Index (MPI) was 109.32 in March 2022, down 0.12 percent from the same period last year. The index, however, grew 1.41 percent in the first quarter of this year compared to the first quarter of 2021.
The Ministry of Industry said that overall industrial production contracted considerably in March 2022 as a result of Russia’s invasion of Ukraine, which resulted in severe global increases in gas prices, oil prices, and inflation.
3) Global bonds head towards worst month ahead of Fed’s rates hike
Global bonds are closing in on their worst month on record as investors brace for Federal Reserve’s rates hike in the coming week. The Bloomberg Global-Aggregate Total Return Index has lost 4.9% in April, putting it on track for the biggest monthly drop since its inception in 1990.
Bonds dropped on fears of faster than expected rate hike by the Fed along with tension in Ukraine.
Swap traders are pricing in a half-point rate increase by the Federal Reserve on May 4 and also see the Reserve Bank of Australia and Bank of England raising borrowing costs next week.
4) China cuts coal import duty to zero to guarantee energy supply
The Chinese Ministry of Finance said in a statement that it will cut import tariffs for coal to zero from May 1 to March 31, 2023 to ensure guarantee for energy supplies.
Current tariffs range from 3% to 6% depending on the type of coal, the ministry said in a statement dated April 26 and posted to its website Thursday. China’s coal imports are down 24% through the end of March this year as global prices have soared.