- USDTHB: moving in the range 34.31-34.38 this morning supportive level at 34.15 resistance level at 34.45
- SET Index: 1,428.0 (-0.17%), 28 Nov 2024
- S&P 500 Index: 5,998.7 (+0.00%), 27 Nov 2024
- Thai 10-year government bond yield (interpolated): 2.349 (-4.35 bps), 28 Nov 2024
- US 10-year treasury yield: 4.25 (+0.00 bps), 27 Nov 2024
- US plans China chip restrictions, but they are less strict than earlier proposals
- German annual inflation unchanged at 2.4% in November
- Tokyo inflation speeds up above 2% as energy subsidies fade
- South Korea unexpectedly cuts interest rates as trade risks from Trump rise
- Euro eases, dollar perks up in muted holiday trade
US plans China chip restrictions, but they are less strict than earlier proposals
The Biden administration is considering additional restrictions on semiconductor equipment and AI memory chip sales to China, escalating the US crackdown on Beijing’s tech ambitions, but avoiding some harsher measures. These rules could be announced next week, although details are still subject to change. The proposal follows months of discussions with allies and lobbying by US chip makers who warn of severe business impacts from stricter measures. The new plan differs from earlier drafts, particularly in which Chinese companies will be added to a trade restriction list, with only some Huawei suppliers being sanctioned, excluding ChangXin Memory Technologies, which is developing AI memory chips.
German annual inflation unchanged at 2.4% in November
German annual inflation held steady in November, defying expectations for a second consecutive increase and interrupting the downward trend in Europe’s largest struggling economy. Inflation remained at 2.4%, below the expected 2.6%. Energy prices dropped by 3.7% compared to the previous year, while food prices rose by 1.8% year-on-year. Core inflation increased to 3.0% in November, up from 2.9% in October.
Tokyo inflation speeds up above 2% as energy subsidies fade
Tokyo's inflation in November picked up pace as the government cut energy subsidies, with overall data showing that the country’s price growth trend is still largely in line with the Bank of Japan’s forecast. Consumer prices, excluding fresh food, rose 2.2% year-on-year in November, up from 1.8%. This was stronger than the 2% median forecast by economists. Overall, headline inflation increased to 2.6%, driven by rising food prices.
South Korea unexpectedly cuts interest rates as trade risks from Trump rise
South Korea's central bank unexpectedly lowered interest rates and hinted at further reductions, as economic growth slowed and concerns over trade risks from a potential second Donald Trump presidency grew. The Bank of Korea reduced its benchmark rate by 25 basis points for the second consecutive meeting, bringing it to 3.00%, with a five-to-two vote in favor of the cut. In its post-meeting statement, the BOK highlighted the likely policies of the incoming US administration as a key factor contributing to increased global economic uncertainty. Additionally, the bank revised its growth forecast for 2025 to under 2% and downgraded its projection for this year.
Euro eases, dollar perks up in muted holiday trade
The 10-year government bond yield (interpolated) on the previous trading day was 2.349, -4.35 bps. The benchmark government bond yield (LB346A) was 2.31, -6.0 bps. Meantime, the latest closed US 10-year bond yields was 4.25, +0.00 bps. USDTHB on the previous trading day closed around 34.45, moving in a range of 34.31 – 34.38 this morning. USDTHB could be closed between 34.15 – 34.45 today. The dollar gained a small rebound after widespread selling ahead of the Thanksgiving holiday but then dropped sharply this morning as the yen strengthened. The Japanese yen appreciated after stronger-than-expected consumer price data from Tokyo raised expectations of more rate hikes by the Bank of Japan. The USDJPY fell 0.6% to 150.64. The euro also declined following Germany's CPI data but later recovered some of its losses this morning.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
