- USDTHB: moving in the range 34.48-34.53 this morning supportive level at 34.40 resistance level at 34.70
- SET Index: 1,437.1 (+0.67%), 2 Dec 2024
- S&P 500 Index: 6,047.2 (+0.24%), 2 Dec 2024
- Thai 10-year government bond yield (interpolated): 2.324 (-0.21 bps), 2 Dec 2024
- US 10-year treasury yield: 4.19 (+1.00 bps), 2 Dec 2024
- US manufacturing activity declines less than expected as orders grow
- Fed officials keep options open for December rate decision
- US strengthens restrictions on China’s access to AI memory and chip equipment
- Euro falls as French government crisis deepens
US manufacturing activity declines less than expected as orders grow
US manufacturing activity shrank less than expected in November, with new orders returning to expansion for the first time in eight months, signaling improving business confidence. The ISM Manufacturing PMI rose to 48.4 from 46.5, exceeding the 47.5 forecast. While the index remained below 50 for the eighth straight month, most subcomponents showed improvement. New orders jumped to 50.4, and production increased to 46.8. Key Fed-related indicators like prices (down to 50.3) and employment (up to 48.1) showed positive trends. Analysts noted that election clarity helped complete delayed orders, but risks like tariffs and supply chain disruptions could limit future gains.
Fed officials keep options open for December rate decision
Three Federal Reserve officials signaled they expect further rate cuts next year but stopped short of committing to a reduction in December. Fed Governor Waller indicated support for a cut at the Dec. 17-18 meeting but noted upcoming data could suggest keeping rates steady. New York Fed President Williams and Atlanta's Raphael Bostic echoed this, stating the economy remains strong and inflation is likely to decline, warranting further cuts, but did not confirm a December rate cut.
US strengthens restrictions on China’s access to AI memory and chip equipment
The US imposed new restrictions on China’s access to critical components for chips and AI, intensifying efforts to limit Beijing’s tech ambitions without sanctioning additional major Chinese firms. The Department of Commerce restricted sales of high-bandwidth memory chips from US and foreign companies, likely impacting SK Hynix, Samsung, and Micron Technology. These chips are crucial for AI applications. The US also expanded controls on chipmaking equipment, including US-made products at foreign plants, with exceptions for key allies like Japan and the Netherlands.
Euro falls as French government crisis deepens
The 10-year government bond yield (interpolated) on the previous trading day was 2.324, -0.21 bps. The benchmark government bond yield (LB346A) was 2.28, -1.5 bps. Meantime, the latest closed US 10-year bond yields was 4.19, +1.00 bps. USDTHB on the previous trading day closed around 34.49, moving in a range of 34.48 – 34.53 this morning. USDTHB could be closed between 34.40 – 34.70 today. The dollar strengthened after President-elect Trump threatened 100% tariffs on BRICS nations unless they pledged not to create a currency to rival the US dollar. Meanwhile, market participants absorbed positive data, including upward revisions to the US Manufacturing PMI and stronger-than-expected ISM Manufacturing PMI. The euro dropped below 1.0500 amid concerns over a potential collapse of French PM Barnier’s government and weak PMI data, while ECB officials continued to signal a rate cut this month. The Japanese yen outperformed the dollar, with USD/JPY falling below 150.00 as attention turned to the possibility of a rate hike by the BoJ, with markets pricing in a 58% chance of a 25bps increase in December.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
