· USDTHB: moving in the range 36.60-36.66 this morning, supportive level at 36.25 resistance level at 36.95
· SET Index: 1,656.6 (-0.27%), 14 Sep 2022
· S&P 500 Index: 3,946.0 (+0.34%), 14 Sep 2022
· Thai 10-year government bond yield (interpolated): 2.82 (+3.99 bps), 14 Sep 2022
· US 10-year treasury yield: 3.41 (-1.00 bps), 14 Sep 2022
- U.S. producer prices posted the second decline in August amid inflation fears
- Eurozone factories suffer biggest output fall since pandemic hit
- UK inflation falls unexpectedly as fuel prices drop
- Asia stocks follow overnight U.S. equities plunge after sky-high U.S. price increases
U.S. producer prices posted the second decline in August amid inflation fears
According to the U.S. Bureau of Labor Statistics, the producer price index decreased 0.1%mom, fell for second straight month in August as the cost of gasoline declined further, resulting in the smallest annual increase in a year, which could allay fears of inflation becoming entrenched. On annual basis, headline PPI increased 8.7%, a substantial pullback from the 9.8% rise in July and the lowest annual gain since August 2021. Core PPI increased 5.6%yoy, matching the lowest rate since June 2021.
Eurozone factories suffer biggest output fall since pandemic hit
The EU’s statistical office, Eurostat, revealed that industrial production in the EU shrank 1.6%mom in July, after growing 1% in the previous month or contracted 2.4%yoy in the euro area and 0.8%yoy in the EU. Precisely, production of capital goods decreased by 4.3%, durable consumer goods by 1.6%, and intermediate goods by 0.8%mom in July. On the other hand, production of energy and non-durable consumer goods rose 0.4% and 1.2%, respectively in the same period. The biggest drop for the eurozone was in the production of capital goods, such as buildings, machinery, and vehicles. While production of durable consumer goods, such as laptops and jewelry, and intermediate goods including steel and wheat also fell. The largest annual declines in industrial output were seen in Ireland, Estonia, Slovakia, and Belgium, respectively.
UK inflation falls unexpectedly as fuel prices drop
The annual rate of consumer price inflation fell to 9.9%yoy in August from 10.1%yoy or 0.5%mom in July, below the market expectations. Prices for vehicle fuels and lubricants dropped by 6.8%yoy in August, their largest monthly fall since April 2020, driven by lower crude oil price. Producer input and output prices both fell unexpectedly for the first time since 2020, suggesting an easing of pipeline inflation pressures. Factories cut their prices by 0.1%. Prices were still up sharply from a year earlier. While core consumer prices, stripped out volatile alcohol, tobacco, and fuel prices, accelerated to 6.3% in August from 6.2% the month earlier.
Asia stocks follow overnight U.S. equities plunge after sky-high U.S. price increases
The 10-year government bond yield (interpolated) on the previous trading day was 2.82, +3.99 bps. The benchmark government bond yield (LB31DA) was 2.59, +9.00 bps. LB31DA could be between 2.57-2.67. Meantime, the latest closed US 10-year bond yields was 3.41, -1.00 bps. USDTHB on the previous trading day closed around 36.61 Moving in a range of 36.60-36.66 this morning. USDTHB could be closed between 36.25-36.95 today. Stock markets tracking losses after sky-high U.S. price increases, raising fears of a prolonged period of interest rate hikes. The sell-off also swept Asia’s other major markets, with benchmarks in Japan and Australia falling by more than 2% and South Korea’s Kospi retreating 1.6%. That came on heels of tumultuous trading in the US that sent the major equities plunging by the most in more than two years. Traders shifted to haven assets, pushing the dollar index by 1.4% to near a two-decade high while the yen against dollar turning back to depreciate around 0.2%.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
