- USDTHB: moving in the range 34.60-34.65 this morning supportive level at 34.50 resistance level at 34.75
· SET Index: 1,557.7 (-0.22%), 15 Jun 2023
· S&P 500 Index: 4,425.8 (+1.21%), 15 Jun 2023
· Thai 10-year government bond yield (interpolated): 2.62 (+4.20 bps), 15 Jun 2023
· US 10-year treasury yield: 3.72 (-11.00 bps), 15 Jun 2023
- ECB raises rates to 22-year high, in no mood to pause
- U.S. business inventories rebound in April
- China's economy slows in May, more stimulus expected
- Euro advances, surges to 15-year peak vs yen, after ECB lifts rates
ECB raises rates to 22-year high, in no mood to pause The European Central Bank raised borrowing costs to their highest level in 22 years on Thursday and left the door open to more hikes, extending its fight against inflation that remains stubbornly high even as the euro zone economy flags. The ECB increased its key interest rate - the one banks pay to park cash securely at the central bank - for the eighth consecutive time, by 25 basis points to 22 year-high of 3.5%. "The key ECB interest rates will be brought to levels sufficiently restrictive to achieve a timely return of inflation to the 2% medium-term target and will be kept at those levels for as long as necessary," ECB President Christine Lagarde said at a press conference following the decision.
U.S. business inventories rebound in April U.S. business inventories rebounded in April, boosted by stocks at manufacturers, suggesting that inventories could contribute to economic growth in the second quarter. Business inventories increased 0.2% after dropping 0.2% in March, the Commerce Department said on Thursday. The rebound in inventories, a key component of gross domestic product, was in line with economists’ expectations. Inventories increased 5.2% on a year-on-year basis in April. Private inventory investment rose at its slowest pace in 1-1/2 years in the first quarter, helping to restrict GDP growth to a 1.3% annualized pace in that three-month period. Growth estimates for the second quarter are around a 2.0% pace.
China's economy slows in May, more stimulus expected China's economy stumbled in May with industrial output and retail sales growth missing forecasts, adding to expectations that Beijing will need to do more to shore up a shaky post-pandemic recovery. The economic rebound seen earlier this year has lost momentum in the second quarter, prompting China's central bank to cut some key interest rates this week for the first time in nearly a year, with expectations of more to come. Industrial output grew 3.5% in May from a year earlier, the National Bureau of Statistics (NBS) said on Thursday, slowing from the 5.6% expansion in April and slightly below a 3.6% increase expected by analysts in a Reuters poll, as manufacturers struggle with weak demand at home and abroad.
Euro advances, surges to 15-year peak vs yen, after ECB lifts rates The 10-year government bond yield (interpolated) on the previous trading day was 2.62, +4.20 bps. The benchmark government bond yield (LB31DA) was 2.59, +4.00 bps. LB31DA could be between 2.30-2.80. Meantime, the latest closed US 10-year bond yields was 3.83, -1.00 bps. USDTHB on the previous trading day closed around 34.63 Moving in a range of 34.60-34.65 this morning. USDTHB could be closed between 34.50-35.00 today. The euro hit a 15-year peak against the yen and a five-week high against the dollar on Thursday after the European Central Bank raised interest rates for the eighth straight time and signaled further tightening to bring euro zone inflation to its medium-term target of 2%. The ECB lifted rates by 25 basis points (bps), as expected, to 3.5%, the highest in 22 years. Its staff have also increased their forecasts for inflation excluding energy and food, especially for this year and next, owing to past upward surprises. The inflation projection for this year was raised to 5.1% from 4.6%. In afternoon trading, the euro was last up 1.1% at $1.0948 after earlier touching a five-week high of $1.0952 against the dollar. Versus the yen, the euro rose 1.2% to 153.52, hitting 153.68 yen, the highest since September 2008, following the ECB decision.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
