- SET Index: 1,516.4 (+1.32%), 8 Feb 2020
- S&P 500 Index: 3915.6 (+0.74%), 8 Feb 2020
- Thai 10-year government bond yield: 1.295 (+6.50 bps), 8 Feb 2020
- US 10-year treasury yield: 1.19% (+0.00 bps), 8 Feb 2020
- ECB must keep easy money policy in place despite inflation surge: Lagarde
- Japan finance minister: G7 focus on emerging market debt, digital taxation and digital currency
- Goldman Sees Relief Bill at $1.5 Trillion, Boosts GDP Estimate to 6.8% in 2021
- Dollar shackled by doubts over U.S. recovery
ECB must keep easy money policy in place despite inflation surge: Lagarde
The European Central Bank must keep copious stimulus in place as an unexpected surge in inflation last month masks weak underlying dynamics, ECB President Christine Lagarde said on Monday. "Underlying price pressures are likely to remain subdued owing to weak demand, low wage pressures and the appreciation of the euro exchange rate," Lagarde told the European Parliament. "Our pledge to preserve favorable financing conditions is crucial in the current environment."
Japan finance minister: G7 focus on emerging market debt, digital taxation and digital currency
The Group of Seven (G7) financial leaders would kick off debate on Friday on emerging market debt problems, implementation of digital taxation and central bank digital currency, Japanese Finance Minister Taro Aso said on Tuesday. Britain will chair a meeting of G7 finance ministers and central bank governors on Feb. 12 to try to map a way out of the global economic crisis inflicted by COVID-19 and find a solution to an international tax wrangle.
Goldman Sees Relief Bill at $1.5 Trillion, Boosts GDP Estimate to 6.8% in 2021
Goldman Sachs Group Inc (NYSE:GS). economists boosted their forecast for the eventual bill that Joe Biden’s call for $1.9 trillion in Covid-19 relief spending. Goldman chief economist said that additional fiscal measures are likely to be valued at $1.5 trillion, after previously estimating $1.1 trillion. They also bumped their GDP forecast for the second quarter to 11%. On an annual basis, they increased their forecasts for 2021 and 2022 growth by 0.2 percentage points each, to 6.8% and 4.5%, respectively. “While the extra $400 billion in stimulus we assume is equivalent to nearly 2% of GDP, we expect that much of this spending will take several quarters to spend out and therefore has more limited implications for near-term growth,” the economists wrote in a note Monday.
Dollar shackled by doubts over U.S. recovery
The benchmark government bond yield (LB29DA, 8.8 years) on the previous trading day was 1.295, +6.50 bps. Thai benchmark government bond yield (LB29DA) could be between 1.28-1.33. Meantime, the latest closed US 10-year bond yields was 1.19%, +0.00bps. USDTHB on the previous trading day closed around 30.04 Moving in a range from 29.95-29.99 this morning. USDTHB could be between 29.92-29.98 today. Meantime, The dollar languished near its lowest in a week on Tuesday as investors began entertaining doubts about the scale of a recent rally driven by expectations of a fast pandemic recovery in the United States.
Sources : Bloomberg, CNBC, Investing, CEIC
