TRUMP’S CHINA SIGNALS GIVE SHARES A LIFT

RECAP: Asian stocks advanced yesterday after US President Donald Trump announced a trade deal with the UK and signalled that tariffs on Chinese goods may fall if preliminary talks this weekend in Switzerland go well.

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Fund inflows have returned to the Thai market amid optimism about global trade deals and speculation over further interest rate cuts, strengthening the baht. For the month to date, institutional investors had net buying of 5.1 billion baht in the Thai market.

The SET index moved in a range of 1,187.86 and 1,221.34 points this week, before closing yesterday at 1,210.94, up 1% from the previous week, with daily turnover averaging 43.86 billion baht.

Institutional investors were net buyers of 3.74 billion baht, followed by foreign investors at 2.37 billion. Retail investors were net sellers of 5.84 billion baht, followed by brokerage firms at 260.45 million.

NEWSMAKERS: The US Federal Reserve maintained its policy interest rate at 4.50%, as widely expected. Chairman Jerome Powell said the central bank does not want to make a “preemptive interest rate cut” as it is difficult to assess whether inflation risk or recession risk is higher.

Trump and British Prime Minister Keir Starmer announced a “historic” trade agreement, under which Washington will lower tariffs on British luxury cars and lift them entirely on steel and aluminium. However, the 10% baseline levy on British imports stays in place. Britain will open its markets to US beef and other farm products.

The EU said it is planning to hit €95 billion worth of US exports with additional tariffs if ongoing trade talks with Trump's team fail to yield a satisfactory result.

Treasury Secretary Scott Bessent is scheduled to lead US officials in talks with Chinese trade officials in Switzerland this weekend to kickstart trade negotiations.

China's central bank cut interest rates and made it easier for banks to increase lending and pump more money into the economy, in the most significant steps taken by Chinese officials to limit the impact of the trade war.