- SET Index: 1,516.9 (-0.09%), 10 Feb 2020
- S&P 500 Index: 3,909.9 (-0.03%), 10 Feb 2020
- Thai 10-year government bond yield: 1.29 (+0.50 bps), 10 Feb 2020
- US 10-year treasury yield: 1.15% (-3.00 bps), 10 Feb 2020
- Recovery in global trade to stall again in first quarter: U.N. report
- Powell Calls for Patient Stimulus Approach to Keep Recovery Alive
- EU to seek until April 30 to ratify Brexit deal
- Dollar Up, Inflation Remains on Investors’ Minds
Recovery in global trade to stall again in first quarter: U.N. report
A recovery in global trade is expected to slow again in the first quarter of 2021 as the coronavirus pandemic keeps disrupting the travel industry after world trade contracted 9% in 2020, a U.N. report said on Wednesday. After lockdowns caused trade to shrink 15% in the first half of 2020, it rebounded in the second half, with global trade in goods up about 8% in the fourth quarter compared with the third, the U.N. Conference on Trade and Development (UNCTAD) said. That was largely due to developing countries, particularly those in East Asia. For the first quarter of 2021, UNCTA projects a 1.5% fall in trade in goods versus the previous quarter, and a 7% drop in trade in services.
Powell Calls for Patient Stimulus Approach to Keep Recovery Alive
Federal Reserve Chairman Jerome Powell said Wednesday, a "patiently accommodative monetary policy stance" is important to boost the labor market and the overall economy following a stall in recent months. "Recognizing the economy's ability to sustain a robust job market without causing an unwanted increase in inflation, the statement says that our policy decisions will be informed by our 'assessments of the shortfalls of employment from its maximum level' rather than by 'deviations from its maximum level,' Powell said . "This means that we will not tighten monetary policy solely in response to a strong labor market." The Fed left the target range for its federal funds rate unchanged at 0-0.25% and kept its bond-buying program intact during its first 2021 meeting.
EU to seek until April 30 to ratify Brexit deal
The European Union will ask Britain if it can take an extra two months to ratify the Brexit trade agreement by extending until April 30 provisional application of the deal. The European Commission, which has overseen the Brexit talks and is in charge of trade policy for the bloc, said it had adopted a proposal on Wednesday to seek the extension. Provisional application was to have lasted until the end of February. The extension would have to be agreed by Britain in the EU-UK partnership council, but it was not clear when that body would next meet.
Dollar Up, Inflation Remains on Investors’ Minds
The benchmark government bond yield (LB29DA, 8.8 years) on the previous trading day was 1.29, +0.50 bps. Thai benchmark government bond yield (LB29DA) could be between 1.27-1.31. Meantime, the latest closed US 10-year bond yields was 1.15%, -3.00bps. USDTHB on the previous trading day closed around 29.92 Moving in a range from 29.89-29.92 this morning. USDTHB could be between 29.89-29.95 today. Meantime, The dollar was up on Thursday morning in Asia but continued to hover near two-week lows as weaker-than-expected U.S. inflation and a promise from the Federal Reserve to keep interest rates low.
Sources : Bloomberg, CNBC, Investing, CEIC
