Marketwatch

According to the latest report on Asian FX from DBS Group Research, trade wars are taking their toll on regional currencies. The worrisome tradewar escalation is causing global investment and trade momentum to weaken, but even before data related to those activities becomes available, currency markets have been reflecting the rising gloom and uncertainty.
China, facing one salvo after another from the US on a nearly daily basis, has seen a sharp rise in CNY volatility. The dollar index, up 6.5 per cent since the beginning of last year, could rise further against the backdrop of economic and political uncertainty in the EU, slowdown in China, and security risks in the Middle East. Asian currencies with heavy external funding needs could struggle in this climate. The Singapore dollar, Malaysian ringgit, and Indonesian rupiah gave up all their gains this year against the greenback. Only the Thai baht remains firm, thanks to the inflow into Thai bonds ,which are considered a safe haven. Our preferred asset class is REITs and property funds. – Thanawat Patchimkul, Head of Research, DBS Vickers Securities (Thailand)

New tax on debt 
instruments soon 

The US PMI hit its lowest point in 36 months and house sales have recorded a sharp drop. These stagnant economic figures have been pressuring stock marฌkets. In the meantime, the US-China trade negotiations continue. US President Donald Trump the trade agreement between the United States and China is possible, and the Huawei issue could be included in the talks. If there’s progress in the trade negotiations this week, stock markets’ concern may ease.  A new tax rate levied on debt instruments via mutual funds has been announced, with the new rate coming into force on August 20. Some capital may flow out of fixed income funds to other assets.
We prefer highdividend stocks in SETHD. Our picks are SCC, RATCH, QH, TTW, ADVANC and SCB. – Research Department, Trinity Securities