SET Maintains Strong Stance amid Volatility in Asian Markets, US and China Working on MOU
Sources said that the US and China will work on a memorandum of understanding this week, sending positive sentiment to the Thai market.
The Stock Exchange of Thailand (SET) is maintaining a strong stance on keeping its index in positive territory amid volatility in Asian markets. As of 15:35 in Thailand, SET rises 3.38 points or 0.23% to 1,649.21 points with ฿32 billion in value.
Positive sentiment in the afternoon could because of a good sign of the trade talk in this week, not to mention that all three future indices of Wall Street are also in positive territories as well. Dow Jones Futures hikes 0.20%, S&P 500 Futures rises 0.12% and Nasdaq Futures gains 0.17%.
Followed the trade talk in Beijing the previous week, the US and Chinese delegates continue the discussion of a possible outcome before the deadline on March 1, 2019, in Washington this week.
So far, the detail on talk had not been provided to the public as much as it should other than the word “productive” from the US delegation and the promise from Chinese Vice President Liu He to import more soil beans. If things are going in this direction, a structural reform may be more difficult to achieve.
Nevertheless, various sources report that both parties currently at work on drawing up six memorandums of understanding (MOU) on structural issues for the meeting in Washington as follows:
- Forced technology transfer and cyber theft
- Intellectual property rights
- Open financial service markets to more foreign firms
- Devaluing Currency (Chinese yuan)
- Buying more agriculture products
- Non-tariff barriers in keeping the US products out of China
This could be a significant step and positive sign to bind China with specific commitments and to end the trade war that had been tormenting global market.
However, no breakthrough is expected from the meeting this week as the outlook is too fuzzy, but the fact that both U.S. and China are in the process of agreement may be the main factor for the US President Donald Trump to extend the deadline for China, referring to what he had been saying for several weeks.