- USDTHB: moving in the range 34.205-34.255 this morning supportive level at 34.10 resistance level at 34.30
- SET Index: 1,353.6 (-0.40%), 2 Sep 2024
- S&P 500 Index: 5,648.4 (+1.00%), 30 Aug 2024
- Thai 10-year government bond yield (interpolated): 2.574 (+1.65 bps), 2 Sep 2024
- US 10-year treasury yield: 3.91 (+4.0 bps), 30 Aug 2024
- Eurozone manufacturing sector continues to struggle
- China's August manufacturing improved, but export outlook weakened
- South Korea’s inflation hits a 3.5-year low, meeting the central bank’s target
- The US dollar traded in a tight range amid the Labor Day holiday
Eurozone manufacturing sector continues to struggle
Eurozone manufacturing continued to contract in August, with data indicating that a recovery may be distant as demand dropped at its fastest rate this year. According to HCOB's final euro zone manufacturing Purchasing Managers' Index (PMI) from S&P Global, the index was at 45.8 in August, slightly above the preliminary estimate of 45.6 but still well below the 50 mark that separates growth from decline. The index for new orders dropped to 43.3 from 44.1, reaching its lowest point since December. Additionally, international demand decreased at the quickest pace of the year. This drop occurred as euro zone manufacturers increased their prices for the first time in 16 months, particularly in France, the Netherlands, Greece, and Italy. The decline in German manufacturing intensified, and in France, activity contracted at the quickest rate since January.
China's August manufacturing improved, but export outlook weakened
In August, China's manufacturing sector returned to growth, driven by an increase in new orders which boosted production and provided a rare piece of positive news amid a series of disappointing economic reports this summer. Despite this, a drop in new export orders after eight months of growth raised concerns, especially as exports data had already been subdued in July. The Caixin/S&P Global manufacturing PMI climbed to 50.4 in August, up from 49.8 the previous month, surpassing analysts' predictions of 50.0. This was more optimistic compared to an official PMI report released on Saturday, which indicated that manufacturing activity continued to decline in August.
South Korea’s inflation hits a 3.5-year low, meeting the central bank’s target
In August, South Korea's consumer inflation slowed to its lowest level in nearly 3.5 years, aligning with market expectations for a potential monetary policy easing. The consumer price index increased by 2.0% year-over-year, down from 2.6% the previous month, marking the slowest annual growth since March 2021. This figure matched the median 2.0% increase forecasted by economists and the central bank's medium-term target of 2%. On a monthly basis, the index rose 0.4%, the highest in six months, following a 0.3% increase the month before and exceeding the 0.3% forecast. Core CPI, which excludes volatile food and energy prices, climbed 2.1% year-over-year, down from 2.2% the previous month and the weakest increase since November 2021.
The US dollar traded in a tight range amid the Labor Day holiday
The 10-year government bond yield (interpolated) on the previous trading day was 2.574, +1.65 bps. The benchmark government bond yield (LB346A) was 2.58, +2.5 bps. Meantime, the latest closed US 10-year bond yields was 3.91, +4.0 bps. USDTHB on the previous trading day closed around 34.17 moving in a range of 34.205 – 34.255 this morning. USDTHB could be closed between 34.10 - 34.30 today. The dollar index stayed within a narrow range of 101.64 to 101.79 after rising from 101.24 to 101.78 on Friday. The euro moved similarly to the USD, trading between 1.1040 and 1.1055, compared to 1.1043 and 1.1094 on Friday. The Japanese yen saw a slight increase as APAC traders reacted to Friday’s USD and bond market activity. Japanese data, including higher-than-previous Q2 Capex and an upward revision of August’s manufacturing PMI, had little impact. The USD/JPY traded between 145.89 and 146.59 after rising above its 21-day moving average (145.97) on Friday.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics,
Investing, CEIC
