- USDTHB: moving in the range 35.08-35.215 this morning supportive level at 35.00 resistance level at 35.30
· SET Index: 1,560.2 (+0.18%), 25 Aug 2023
· S&P 500 Index: 4,376.3 (-1.35%), 25 Aug 2023
· Thai 10-year government bond yield (interpolated): 2.79 (+0.63 bps), 25 Aug 2023
· US 10-year treasury yield: 4.25 (+2.00 bps), 25 Aug 2023
- U.S. consumer sentiment slips slightly in August
- German economy stagnates in Q2 after winter recession
- China's industrial profits extend slump into seventh month
- Dollar steady as Fed's Powell says higher rates may be needed
U.S. consumer sentiment slips slightly in August U.S. consumer sentiment fell modestly in August, as short- and long-term inflation expectations worsened. The University of Michigan's final August reading on the overall index of consumer sentiment came in at 69.5 on Friday compared to 71.6 in July, and 1.7 percentage points lower than a preliminary reading earlier in the month. Economists polled by Reuters had forecast sentiment would remain relatively stable at 71.2. August had the second highest reading since December 2021, and was far closer to the historic average of 86 than the all-time low registered in June 2022. The relatively positive outlook was buoyed by robust consumer spending and a resilient labor market. But these recent positive trends in outlook might not last: Americans expressed concerns that recent rapid improvements in inflation could be moderating, and the overall consumer expectation index declined by 2.8 percentage points between July and August, the biggest drop since May.
German economy stagnates in Q2 after winter recession Germany's economy stagnated in the second quarter from the previous three months, showing no sign of recovery from a winter recession and cementing its position as one of the world's weakest major economies. The figure of zero growth for the second quarter was in line with a first estimate published in late July. Year on year, adjusted GDP contracted by 0.2% in the second quarter. Quarter on quarter, economic activity had fallen by 0.4% in the fourth quarter of 2022 and by 0.1% in the first quarter of 2023. Two consecutive quarters of contraction fulfills the technical definition of a recession. Weak purchasing power, thinned-out industrial order books, a slowdown in the Chinese economy and the impact of the most aggressive monetary policy tightening in decades all point to weak economic activity in Germany going forward.
China's industrial profits extend slump into seventh month Profits at China's industrial firms fell 6.7% in July from a year earlier, extending this year's slump to a seventh month with weak demand squeezing companies as a post-pandemic recovery faltered in the world's second-biggest economy. Earnings shrank 15.5% year-on-year for the first seven months, following a 16.8% decline in the first half of the year, data from the National Bureau of Statistics showed on Sunday. Profits were down 8.3% in June, according to the bureau, which only occasionally publishes monthly figures. Big Chinese manufacturers posted losses for the first half, with engineering firm China Aluminum International reporting a net loss of 830.6 million yuan.
Dollar steady as Fed's Powell says higher rates may be needed The 10-year government bond yield (interpolated) on the previous trading day was 2.79, +0.63 bps. The benchmark government bond yield (LB31DA) was 2.78, +1.00 bps. Meantime, the latest closed US 10-year bond yields was 4.25, +2.00 bps. USDTHB on the previous trading day closed around 35.12. Moving in a range of 35.08-35.215 this morning. USDTHB could be closed between 35.00-35.30 today. The U.S. dollar held steady on Friday, on pace to finish the week strong, after Federal Reserve Chair Jerome Powell said the central bank may need to raise interest rates further to ensure inflation is contained but promised to move "carefully" at upcoming meetings. Powell, in a speech at an economic summit in Jackson Hole, Wyoming, said policymakers would "proceed carefully as we decide whether to tighten further," but also made clear that the central bank has not yet concluded that its benchmark interest rate is high enough to be sure that inflation returns to the 2% target. The U.S. dollar index - which measures the currency against six major counterparts - was about flat at $104.06 after rising to 104.44, its highest since June 1.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
