- USDTHB: moving in the range 37.80-37.84 this morning, supportive level at 37.50 resistance level at 38.00
· SET Index: 1,602.3 (-0.37%), 27 Oct 2022
· S&P 500 Index: 3,807.3 (-0.61%), 27 Oct 2022
· Thai 10-year government bond yield (interpolated): 3.23 (-1.81 bps), 27 Oct 2022
· US 10-year treasury yield: 3.96 (-8.0 bps), 27 Oct 2022
- US economy expanded by 2.6% in the third quarter
- ECB raises interest rates again, cuts bank subsidies
- BoJ holds ultra-low interest rates, raises 2022 inflation forecast
- IMF cuts Asia's economic forecasts as China's slowdown bites
US economy expanded by 2.6% in the third quarter The US economy rebounded from six months of contraction in the third quarter, according to preliminary data from the Department of Commerce on Thursday, as a rise in exports and consumer spending was partly offset by a fall in housing investment. Gross domestic product grew by 2.6% on a year-on-year basis in the July to September period, up from declines of 1.6% and 0.6% in the first and second quarters, respectively. Economists had expected the reading to come in at 2.4%. Exports jumped, particularly of industrial supplies and materials, as well as travel and financial services. Consumer spending also increased, as a fall in demand for cars and food was outweighed by expenditures on health care services.
ECB raises interest rates again, cuts bank subsidies The European Central Bank raised interest rates again on Thursday and put the reduction of its bloated balance sheet on the agenda but said “substantial” progress had already been made in its bid to fight off a historic surge in inflation. Worried that rapid price growth is becoming entrenched, the ECB is raising borrowing costs at the fastest pace on record. Further steps are almost certain as unwinding a decade’s worth of stimulus will take it well into next year and beyond. The central bank for the 19 countries that use the euro raised its deposit rate by a further 75 basis points to 1.5% - the highest rate since 2009. ECB rates had been negative – below 0% - for eight years until it hiked in July.
BoJ holds ultra-low interest rates, raises 2022 inflation forecast The Bank of Japan (BoJ) held interest rates at record lows as expected on Friday, and said inflation is likely to rise more in the near-term as the Japanese economy struggles with elevated raw material costs and supply chain issues. The central bank held its target for short-term interest rates at negative 0.1% and said in a statement that it will continue to guide the 10-year bond yield at 0%. The central bank now expects CPI inflation to end the year at 3%, higher than its previous forecast of 2.3%. But it also expects inflation to ease to around 1.5% in 2023 and 2024.
IMF cuts Asia's economic forecasts as China's slowdown bites The 10-year government bond yield (interpolated) on the previous trading day was 3.23, -1.81 bps. The benchmark government bond yield (LB31DA) was 3.14, +1.0 bps. LB31DA could be between 3.05-3.40. Meantime, the latest closed US 10-year bond yields was 3.96, -8.0 bps. USDTHB on the previous trading day closed around 37.76 Moving in a range of 37.80-37.84 this morning. USDTHB could be closed between 37.75-38.20 today. The International Monetary Fund cut Asia's economic forecasts on Friday as global monetary tightening, rising inflation blamed on the war in Ukraine, and China's sharp slowdown dampened the region's recovery prospects. While inflation in Asia remains subdued compared with other regions, most central banks must continue raising interest rates to ensure inflation expectations do not become de-anchored. The IMF cut Asia's growth forecast to 4.0% this year and 4.3% next year, down 0.9% point and 0.8 point from April, respectively. The slowdown follows a 6.5% expansion in 2021.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
