Bond

The Federal Reserve is expected to hold borrowing costs steady at a high level this week, with Chair Jerome Powell's press conference being closely watched for any hawkish signals. Meanwhile, the eurozone may have stopped slowing and started growing again, while China's manufacturing activity is expected to have expanded for a second month in April.

The U.S. economy grew at a slower pace than expected in the first quarter of 2024, but inflation remained high, suggesting that the Federal Reserve would not cut interest rates before September. The Commerce Department reported that gross domestic product (GDP) increased at an annualized rate of 1.6% in the first quarter.

Thailand's central bank is open to adjusting monetary policy if the economic outlook changes, but it needs to balance immediate and long-term factors when setting rates. The bank expects the economy to grow 2.6% this year and 3.0% in 2025, but uncertainties remain, including how well exports will recover.

Asian markets rose on Monday despite a tech stock slump on Wall Street, as investors shrugged off concerns about rising interest rates and focused on positive earnings reports from some companies. The S&P 500 dropped 0.9% on Friday, marking its third consecutive losing week, while the Dow Jones rose 0.6% and the Nasdaq fell 2%.

The Kishida Cabinet's approval rating saw a slight increase to 26% following the LDP's punishment of 39 lawmakers involved in a political fund scandal. However, public dissatisfaction remains high, with 78% disapproving of Kishida's handling of the issue and 67% expressing dissatisfaction with the LDP's punishment.