- USDTHB : moving in the range 34.52-34.62 this morning, supporting level of USDTHB is around 34.50, resistance level is around 34.65
- SET Index: 1,604.5 (-1.55%), 9 May 2022
- S&P 500 Index: 3,991.2 (-3.26%), 9 May 2022
- Thai 10-year government bond yield (interpolated): 3.34% (+12.88 bps), 10 May 2022
- US 10-year treasury yield: 3.05 (-7.00bps), 10 May 2022
- U.S. wholesale inventories rise strongly
- U.K. Retail Sales Hit by Cost of Living
- Japan Personal Spending Falls for 1st Time in 3 Months
- US Futures Slip After Wall Street Rout as Inflation fears and Growth concerns
U.S. wholesale inventories rise strongly Wholesale inventories in the US increased 2.3% mom to $840.3 billion in March of 2022, matching initial estimates. It follows an upwardly revised 2.8% rise in February. Inventories of durable goods went up 2.2%, namely for furniture (4.5%), electrical (4.2%) and hardware (3.7%) equipment. Meanwhile, wholesale stocks of nondurables increased 2.6%, with apparel (4.4%), farm products (3.8%), and groceries (3.6%). Sales at wholesalers increased 1.7% in March after gaining 1.5% in February. At March’s sales pace it would take wholesalers 1.22 months to clear shelves, unchanged from February. With the Federal Reserve raising interest rates to curb inflation, demand is expected to cool. Economists warn that this, with fractured supply chains, could create an inventory imbalance and trigger a recession. Since the current supply-chain disruptions causes difficulty in managing inventories, it’s possible that businesses are caught with excess inventories in a couple of years as they over-order today to compensate for the delays.
U.K. Retail Sales Hit by Cost of Living Retail sales in the United Kingdom decreased 1.7% in April 2022 from a year earlier, slowing further from a 0.4% decline in the previous month, as the rising cost of living crushed consumer confidence and put the brakes on consumer spending. Big ticket items have been hit hardest, as consumers reigned in spending on furniture, electricals and other homeware, compounded by delays on goods coming from China. Customers face a difficult year, with the BOE predicting inflation to reach more than 10%. Also, retailers are experiencing higher costs as a result of rising commodity prices, transport costs, labor shortages, delays at ports, and the war in Ukraine. Further headwinds are coming, such as rising global food prices, which rose 13% between March and April.
Japan Personal Spending Falls for 1st Time in 3 Months Household spending in Japan dropped by 2.3% in real terms from the prior year in March 2022, compared with market forecasts of a 2.8 percent fall and reversing from a 1.1% rise a month earlier. This was the first decline in personal spending since last December, as consumers remained wary of rising living costs despite some easing of Covid-19 curbs. Spending declined on consumption of fuel, light & water charges (-3.2% ), food (-2.5%), furniture (-5.2%), medical care (-1.3%) and housing (-19.9%). In addition, spending on transport grew softer (8.8%). On the other hand, spending on consumption of clothing rebounded slightly at 0.1% from -11.0% in previous month.
US Futures Slip After Wall Street Rout as Inflation fears and
Growth concerns
The 10-year government bond yield (interpolated) on the previous
trading day was 3.34, +12.88 bps. The benchmark government bond yield (LB31DA)
was 3.35, +15.0 bps. LB31DA could be between 3.30-3.45. Meantime, the latest closed
US 10-year bond yields was 3.05%,-7.0 bps. USDTHB on the previous trading day
closed around 34.53, moving in a range from 34.52-34.62 this morning. USDTHB
could be closed between 34.50-34.65 today. US stock futures slipped on Tuesday
after Wall Street extended a sharp selloff that sent all three major averages
to their lowest levels in over a year. Dow futures fell 0.4%, while S&P 500
and Nasdaq 100 futures were each down about 0.5%. The moves came as inflation
fears and growth concerns continued to grip markets. Rising interest rates also
continued to pressure technology names with sharp losses.
