- USDTHB: moving in the range 36.25-36.33 this morning, supportive level at 36.25 resistance level at 36.50
- SET Index: 1,665.7 (+0.67%), 12 Sep 2022
- S&P 500 Index: 4,110.4 (+1.05%), 12 Sep 2022
- Thai 10-year government bond yield (interpolated): 2.79 (+1.67 bps), 12 Sep 2022
- US 10-year treasury yield: 3.37 (+4.00 bps), 12 Sep 2022
· UK economy grew more slowly than expected, raise recession risk
· U.S. emergency oil reserves tumble amid global supply concerns
· China's festival travel dropped more than third amid COVID curbs
· Gold rises, Euro jumps as dollar slips; focus shifts to U.S. inflation data
UK economy grew more slowly than expected, raise recession risk The Office for National Statistics reported that UK economy expanded by 0.2%mom in July, less than expected, compared with June when the Jubilee public holidays weighed on activity. The industrial production and construction output both shrank in July at 0.3%mom and 0.8%mom respectively, reflecting the jump in prices for materials, part of the broader inflation surge, as well as lost working hours because of the extremely hot weather. Production was hit by a fall in demand for energy such as electricity due to higher than usual temperatures, suggesting that there may be some signs of changes in consumer behavior and lower demand in response to increased prices. However, Services output grew by a monthly 0.4%mom in this month. Besides, the Bank of England (BoE) forecasted UK economics’ recession could be seen from the end of 2022 until early 2024, due in large part to the hit to living standards from energy prices, pushed up by the war in Ukraine.
U.S. emergency oil reserves
tumble amid global supply concerns According to data released by
the U.S. Department of Energy (DOE), U.S. emergency oil stocks fell 8.4 million
barrels to 434.1 million barrels in the week ended September 9, its lowest
level since October 1984. Global oil supply is expected to tighten further when
a European Union embargo on Russian oil takes effect on December 5. In more
bearish news for markets, China's oil demand could contract for the first time
in two decades this year as Beijing's zero-COVID policy keeps people at home
during holidays and reduces fuel consumption. On the other hand, the G7 will
implement a price cap on Russian oil to limit the country's oil export revenue,
seeking to punish Moscow over the invasion of Ukraine, while taking measures to
ensure that oil could still flow to emerging nations.
China's festival travel dropped more than third amid COVID curbs The number of journeys taken during China's three-day mid-Autumn festival dropped by more than a third compared with last year, a state media report said on September 12, as the country's zero-COVID policy discouraged people from travelling. Passenger trips during a holiday that typically involves family reunions were estimated at 66.96 million between September 10-12 when the holiday ends. On the flip page, trips by road were down 37% on the year at 48.18 million and those by ship were down 15% at 1.54 million. People took 1.28 million trips within China by air, a level nearly 60% lower than the corresponding holiday last year.
Gold rises, Euro jumps as dollar slips; focus shifts to U.S. inflation data The 10-year government bond yield (interpolated) on the previous trading day was 2.79, +1.67 bps. The benchmark government bond yield (LB31DA) was 2.57, +5.0 bps. LB31DA could be between 2.55-2.65. Meantime, the latest closed US 10-year bond yields was 3.37, +4.00 bps. USDTHB on the previous trading day closed around 36.33 Moving in a range of 36.25-36.33 this morning. USDTHB could be closed between 36.25-36.50 today. Investors awaited key U.S. inflation data released on today evening (GMT+7) for cues on the pace of interest rate hikes by Fed. The dollar index retreated to hit at 107.8 level intraday, making gold more attractive for overseas buyers, gold jumped 1% on September 12. The Euro also jumped to a more than three-week peak versus the dollar, as European Central Bank officials argued for further aggressive monetary tightening.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
