·
Euro zone Q2 growth revised up, supported by
household spending ·
China’s trade growth loses momentum on
softer demand in August ·
Australia GDP expands 3.6%yoy in the second
quarter ·
U.S. stock indexes climbed the most in
roughly a month as bond yields eased
Euro zone Q2 growth revised up, supported by household spending The European Union’s statistics office Eurostat stated that GDP in the 19 countries rose by 4.1%yoy or 0.8%qoqsa. Euro zone economic growth was stronger than previously estimated in the second quarter at 3.9%yoy, as household spending recovered after half of year of stagnation despite the squeeze on disposable income from spiraling inflation. Household spending contributed 0.6 pp to the euro zone growth figure after zero for the previous two quarters. Government spending contributed 0.1 pp and capital formation 0.2 pp. External trade, however, contributed a decrease of 0.1 pp. While Germany registered nearly no growth, France expanded by 0.5% from the previous quarter and both Italy and Spain by 1.1%. Growth was strongest in the Netherlands at 2.6%.
China’s trade growth loses momentum on softer demand in August The China’s National Bureau of Statistics showing the trade figure that exports rose 7.1%yoy in August, slowing from an 18.0%yoy gain in July, as surging inflation crippled overseas demand and fresh Covid curbs and heatwaves disrupted production, reviving downside risks for the economy. Slow economic activity across the globe is weighing on overseas demand for Chinese goods. Imports were again tepid, rising only 0.3%yoy in August from 2.3%yoy in the month prior. This saw domestic demand tumble sharply in the country, which in turn pressured imports. China logged a trade balance of $79.39 billion in August, well below expectations for a surplus of $92.7 billion, and fell sharply from July’s reading of $101.26 billion.
Australia GDP expands 3.6%yoy in the second quarter The Australian Bureau of Statistics reported that GDP rose 3.6%yoy in the second quarter or 0.9%momsa as the lowest unemployment rate in almost five decades underpinned household incomes and spending. Domestic final demand contributed 1.0 pp to its growth whereas household final consumption expenditure contributed 1.1 pp, driven by increased spending on discretionary services. Government consumption detracted 0.2 pp, with reduced spending on health by state governments following the peak of the Omicron outbreak in March quarter. Net trade contributed 1.0 pp, driven by a strong rise in exports, while imports recorded a partly offsetting rise.
U.S. stock indexes climbed the most in roughly a month as bond yields eased The 10-year government bond yield (interpolated) on the previous trading day was 2.82, +0.99 bps. The benchmark government bond yield (LB31DA) was 2.63, +4.0 bps. LB31DA could be between 2.55-2.65. Meantime, the latest closed US 10-year bond yields was 3.27, -6.00 bps. USDTHB on the previous trading day closed around 36.72 Moving in a range of 36.45-36.52 this morning. USDTHB could be closed between 36.25-36.75 today. U.S. stock indexes climbed the most in roughly a month with investors shrugging off hawkish remarks made by Federal Reserve officials on Wednesday (September 7). High-growth companies such as those in the tech sector tend to benefit when yields go down as it means a lower discount rate on their future profits when investors are calculating valuations. The 10-year Treasury yield slipped from three-month highs hit earlier in the session, boosting shares of rate-sensitive stocks.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
