- USDTHB: moving in the range 34.13-34.20 this morning supportive level at 34.00 resistance level at 34.25
- SET Index: 1,431.7 (-0.57%), 13 Dec 2024
- S&P 500 Index: 6,051.1 (-0.00%), 13 Dec 2024
- Thai 10-year government bond yield (interpolated): 2.321 (-0.14 bps), 13 Dec 2024
- US 10-year treasury yield: 4.40 (+8.00 bps), 13 Dec 2024
- UK economy suffers first back-to-back declines since 2020
- Japan's manufacturing PMI drops, services rise in December
- China’s regulators vow to stabilize property, stock markets
- China's credit growth slows despite recent stimulus
- US Dollar remains steady as focus shifts to Fed decision
UK economy suffers first back-to-back declines since 2020
Britain's economy shrank for the second consecutive month in October as consumers prepared for a challenging budget, putting the Labour government's growth pledge in jeopardy just months after taking office. Gross domestic product fell by 0.1%, following a 0.1% decline the month before, contrary to market expectations of a 0.1% increase. Services remained stagnant for the second month in a row due to weakness in consumer-facing sectors, such as pubs, restaurants, and retailers. Both manufacturing and construction output also saw declines.
Japan's manufacturing PMI drops, services rise in December
Japan's factory activity contracted for the sixth consecutive month due to weak demand, while the service sector saw continued growth in December, emphasizing the economy's growing dependence on services. The au Jibun Bank flash manufacturing PMI improved slightly to 49.5, while the services PMI rose to 51.4. Despite a four-month high in growth, concerns over labor shortages and rising costs dampened business sentiment. Input cost increases led to the fastest rise in selling prices in eight months.
China’s regulators vow to stabilize property, stock markets
China's regulators promised to boost efforts to stabilize the housing and stock markets and improve fiscal policies after a leadership meeting calling for more stimulus. The government will support the property market by increasing demand and controlling land supply. The China Securities Regulatory Commission will also strengthen oversight of futures, spot trading, margin trading, and derivatives.
China's credit growth slows despite recent stimulus
China's credit growth unexpectedly slowed in November as loan demand weakened, highlighting increased challenges for economic growth. Aggregate financing, a broad credit measure, rose by 2.34 trillion yuan. This was below the median forecast of 2.7 trillion yuan from economists forecast and lower than the 2.5 trillion yuan increase in November of the previous year. Financial institutions issued 580 billion yuan in new loans, far below the forecast of 995 billion yuan. Loans to the real economy, excluding those to financial institutions, hit their lowest level for November since 2009, partly offsetting the boost from higher government bond issuance and slowing overall credit growth.
US Dollar remains steady as focus shifts to Fed decision
The 10-year government bond yield (interpolated) on the previous trading day was 2.321, -0.14 bps. The benchmark government bond yield (LB346A) was 2.29, -1.0 bps. Meantime, the latest closed US 10-year bond yields was 4.40, +8.00 bps. USDTHB on the previous trading day closed around 34.03, moving in a range of 34.13 – 34.20 this morning. USDTHB could be closed between 34.00 – 34.25 today. The Dollar remained mostly unchanged on Friday, with the DXY fluctuating around 107.00, trading within a range of 106.72-107.18, despite the ongoing rise in yields throughout the past week. This week, focus shifts to the FOMC rate decision, retail sales, and PCE data. The Euro outperformed on Friday, with EUR/USD climbing to 1.0524 from a low of 1.0454, as attention turned to Eurozone PMI data. The British pound underperformed after weak GDP data led GBP/USD to test the 1.2600 level, but it did not break through this psychological threshold. The Japanese yen lagged the most in the higher UST yield environment, with reports indicating the BoJ is likely to pause its rate hike next week.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
