- USDTHB: moving in the range 35.31-35.42 this morning supportive level at 35.25 resistance level at 35.45
· SET Index: 1,548.7 (-0.83%), 4 Sep 2023
· S&P 500 Index: 4,515.8 (+0.18%), 1 Sep 2023
· Thai 10-year government bond yield (interpolated): 2.81 (+2.20 bps), 4 Sep 2023
· US 10-year treasury yield: 4.18 (+9.00 bps), 1 Sep 2023
- U.S. manufacturing sector stabilizing at weaker levels in August
- Euro zone investor mood darkens in Sept –survey
- China service sector activity hits 8-mth low in August- Caixin PMI
- Dollar eases as risk appetite improves on China's measures
U.S. manufacturing sector stabilizing at weaker levels in August U.S. manufacturing contracted for a 10th straight month in August, but the pace of decline continued to slow, suggesting that the sector could be stabilizing at lower levels. The Institute for Supply Management (ISM) said on Friday that its manufacturing PMI increased to 47.6 last month from 46.4 in July. The index slumped to 46.0 in June, which was the lowest reading since May 2020. Since last November, the PMI has been stuck below the 50 threshold, which indicates contraction in manufacturing, the longest such stretch since the 2007-2009 Great Recession. Economists polled by Reuters had forecast the index rising to 47. Manufacturing, which accounts for 11.1% of the economy, has been hammered by 525 basis points worth of interest rate increases from the Fed since March 2022.
Euro zone investor mood darkens in Sept –survey Investor morale in the euro zone fell more than expected at the start of September as Germany's economic weakness remained a major drag on the region, a survey showed on Monday. Sentix's index for the euro zone declined to -21.5 points in September from -18.9 in August, weaker than the -20.0 estimate in a Reuters poll of analysts. The sub-index for future expectations in the euro zone also fell to -21.0 points, from -17.3 in the previous month. The current situation index declined to -22.0 points, its lowest level since November 2022. Singling out Germany, Huebner said the "complete lack of economic competence in the political leadership and the enormous uncertainties for the economy caused by the energy and electricity crisis are dragging the German economy deeper and deeper into recession".
China service sector activity hits 8-mth low in August- Caixin PMI Chinese service sector activity grew at a slower-than-expected pace in August, a private survey showed on Tuesday, with slowing overseas demand being the key source of pressure on service providers. The Caixin China General Services purchasing managers’ index (PMI) rose 51.8 in August, lower than expectations for a reading of 53.6 and July’s figure of 54.1, Caixin Insights said in a statement. August was the index’s weakest showing in eight months. Caixin noted that the weaker reading was driven chiefly by service exporters facing weaker overseas demand, amid deteriorating economic conditions in most of China’s biggest trade partners. Local demand remained relatively strong, helping keep the PMI in expansion territory at above 50.
Dollar eases as risk appetite improves on China's measures The 10-year government bond yield (interpolated) on the previous trading day was 2.81, +2.20 bps. The benchmark government bond yield (LB31DA) was 2.78, +2.00 bps. Meantime, the latest closed US 10-year bond yields was 4.18, +9.00 bps. USDTHB on the previous trading day closed around 35.18. Moving in a range of 35.31-35.42 this morning. USDTHB could be closed between 35.25-35.45 today. The safe-haven dollar fell on Monday as risk sentiment improved on hopes China's policy stimulus might stabilize the economy, while U.S. jobs data boosted bets the Federal Reserve could be at the end of its rate hike cycle. With U.S. markets closed on Monday, liquidity is likely to be thin and traders hesitant to place large bets. The dollar, against a basket of currencies, inched 0.15% lower to 104.08, but remained close to the two-month peak of 104.44 it touched on Aug. 25. The index gained 1.7% in August, snapping a two-month losing streak. China stepped up measures to boost the country's faltering economy, with Beijing planning further action including relaxing home-purchase restrictions.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
