- USDTHB: moving in the range 35.55-35.595 this morning supportive level at 35.45 resistance level at 35.65
· SET Index: 1,548.8 (+0.06%), 6 Sep 2023
· S&P 500 Index: 4,465.5 (-0.70%), 6 Sep 2023
· Thai 10-year government bond yield (interpolated): 2.88 (+4.20 bps), 6 Sep 2023
· US 10-year treasury yield: 4.30 (+3.00 bps), 6 Sep 2023
- US ISM Services PMI rose unexpectedly in August
- Euro Zone retail sales dip in July
- UK August construction PMI steepest since 2009
- Oil price surge as extended oil production cuts through the year
- Japanese official warns for intervention as yen gets closer to 148
US ISM Services PMI rose unexpectedly in August The Institute for Supply Management (ISM) reported that non-manufacturing PMI rose to 54.5 in August, the highest reading since February and up from 52.7 in July, and above market expectation. A reading above 50 indicates growth in the services industry, accounted for more than two-thirds of the economy. Precisely, the rate reflected by increase in all subindexes, e.g., Employment Index, which edged higher from 50.7 to 54.7, while the Prices Paid Index climbed to 58.9 from 56.8. However, sentiment among Business Survey Committee respondents varies by industry, most panelists are positive about business and economic conditions there has been a slight pullback in the rate of growth for the services sector.
Euro Zone retail sales dip in July According to Eurostat, the volume of retail trade in the 20 nations decreased by 1.0%YoY or 0.2%MoMsa in July, following an upwardly revised 0.2% rise in June, worse than market expecting to fall by 0.1%MoMsa. Germany and the Netherlands led the decline in sales among the bloc's major economies for which data were available, while France and Spain both booked slight increases in retail trade. Reduced trade was led by lower sales of gasoline and diesel, which fell 1.2% in July. More encouragingly, sales of food, drink and tobacco, a group vulnerable to the effects of inflation, increased slightly in both June and July, reversing a declining trend in the first months of the year.
UK August construction PMI steepest since 2009 The UK Purchasing Managers' Index for the construction industry fell to 50.8 in August, better than market expectation at 50.5, but down from 51.7 in July. The major decline in recent months in residential housebuilding was the steepest since early 2009 excluding the COVID-19 lockdown period. Builders cited weaker economic conditions, rising interest rates and subdued market conditions, cutbacks to new building projects and local planning delays as factors holding back house-building activity.
Oil price surge as extended oil production cuts through the year The ICE Brent futures contract with November delivery was up $1.07 per barrel to $90.07 per barrel and WTI futures higher by $1.40 per barrel to $86.95 per barrel. In accordance with the Saudi Arabia and Russia extending its 1 million barrel per day voluntary oil production cut until December, which a more aggressive move than traders had been expecting as the OPEC+ members seek to support a fragile global market. Besides, the Saudi Arabia’s cut adds to 1.66 million barrels per day of other voluntary crude output declines that some members of OPEC have put in place until the end of 2024. Russia also pledged to voluntarily reduce exports by 500,000 barrels per day in August and by 300,000 barrels per day in September.
Japanese official warns for intervention as yen gets closer to 148 The 10-year government bond yield (interpolated) on the previous trading day was 2.88, +4.20 bps. The benchmark government bond yield (LB336A) was 2.84, +4.00 bps. Meantime, the latest closed US 10-year bond yields was 4.27, +9.00 bps. USDTHB on the previous trading day closed around 35.51 Moving in a range of 35.55-35.595 this morning. USDTHB could be closed between 35.45-35.65 today. Dollar/yen closed above the 147 marking again on Wednesday, highest since November 2022, prompting a strong intervention warning over sharp currency moves, raising the odds of government intervention if the slump continues.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
