- USDTHB: moving in the range 34.55-34.68 this morning, supportive level at 34.50 resistance level at 34.75
· SET Index: 1,633.4 (+0.46%), 14 Dec 2022
· S&P 500 Index: 3,995.3 (-0.61%), 14 Dec 2022
· Thai 10-year government bond yield (interpolated): 2.52 (-9.29
bps), 14 Dec 2022
· US 10-year treasury yield: 3.49 (-2.0 bps), 14 Dec 2022
- Fed hikes rates by 50 bp, as expected, keeps hawkish tone
- UK inflation falls from 41-year high in run-up to BoE rate decision
- Japan’s trade deficit shrinks less than expected in November
- Dow ends lower as Fed hikes, signals higher for longer regime
Fed hikes rates by 50 bp, as expected, keeps hawkish tone The Federal Reserve raised interest rates by half a percentage point on Wednesday and projected at least an additional 75 basis points of increases in borrowing costs by the end of 2023 as well as a rise in unemployment and a near stalling of economic growth.The Fed's latest quarterly summary of economic projections shows U.S. central bankers see the policy rate, now in the 4.25%-4.5% range after Wednesday's 50-basis-point increase, at 5.1% by the end of next year, according to the median estimate of all 19 Fed policymakers.The projection of the target federal funds rate rising to 5.1% in 2023 is slightly higher than investors expected before the meeting and appeared biased if anything to move higher.At a press conference after the meeting, Fed Chair Jerome Powell said that it is too soon to talk about the U.S. central bank's cutting interest rates and ruled out any changes to the Fed's 2% inflation target.
UK inflation falls from 41-year high in run-up to BoE rate decision British inflation fell more than expected in November after it hit a 41-year high in October, raising hopes that the price surge has peaked and offering some comfort to the Bank of England as it prepares to raise interest rates again.The annual rate of consumer price inflation dropped to 10.7% in November from 11.1% in October, the Office for National Statistics (ONS) said, a bigger fall than the decline to 10.9% which economists had forecast in a Reuters poll.The United States and the euro zone have also reported larger-than-expected drops in inflation for November.Like other central banks, the BoE is battling inflation that is far above its 2% target and it has raised rates sharply over the past 12 months, including a three-quarter-point rate rise in November, its biggest in over 30 years.
Japan’s trade deficit shrinks less than expected in November Japan’s trade deficit shrank less than expected in November, data showed on Thursday, as growth in exports did little to offset resilience in imports due to a weakening yen and high commodity prices.The country’s trade balance for November was a deficit of 2.03 trillion yen, compared to a deficit of 2.17 trillion yen in the prior month, data from the Ministry of Finance showed.But the figure was much higher than forecasts for a deficit of 1.68 trillion yen.Exports grew 20% during the month from last year, slightly more than expected, thanks to strong shipments of industrial machinery and automobiles. The reading indicated that Japanese businesses were still seeing some strength in overseas demand despite increasing concerns over a global recession.
Dow ends lower as Fed hikes, signals higher for longer regime The 10-year government bond yield (interpolated) on the previous trading day was 2.52, -9.29 bps. The benchmark government bond yield (LB31DA) was 2.43, -11.0 bps. LB31DA could be between 2.20-2.70. Meantime, the latest closed US 10-year bond yields was 3.49, -2.0 bps. USDTHB on the previous trading day closed around 34.61 Moving in a range of 34.55-34.68 this morning. USDTHB could be closed between 34.40-34.80 today. The Dow closed lower Wednesday but swung wildly between gains and losses as the Federal Reserve moved to a slower pace of rate hikes, but also signaled rates to peak at higher levels than previously expected. The Dow Jones Industrial Average fell 0.42%, or 142 points, the Nasdaq Composite slipped 0.76%, and the S&P 500 fell 0.61%. The Federal Reserve raised interest rates by 0.5% on Wednesday and lifted its forecast for rates to peak at 5.1% and remain at that level through 2023. That was above the 4.6% forecast in September and poured cold water somewhat on Wall Street expectations for a rate cut in the second half of next year.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
