- USDTHB: moving in the range 34.04-34.075 this morning supportive level at 33.90 resistance level at 34.20
- SET Index: 1,401.5 (+0.26%), 27 Dec 2024
- S&P 500 Index: 5,970.8 (-1.11%), 27 Dec 2024
- Thai 10-year government bond yield (interpolated): 2.273 (+0.63 bps), 27 Dec 2024
- US 10-year treasury yield: 4.62 (+4.0 bps), 27 Dec 2024
- US goods trade gap widens in November
- Yellen announces that the Treasury will reach the debt limit by mid-January
- Japan's factory activity shrinks at slower pace
- China urges local governments to give cash handouts for New Year
- US Dollar fluctuates as caution continues at year-end
US goods trade gap widens in November
The U.S. goods trade deficit grew more than anticipated in November, driven by a rebound in imports, making it unclear if trade will contribute to economic growth this quarter for the first time in a year. The deficit rose to a seasonally adjusted $102.9 billion from $98.3 billion in October, surpassing the forecasted $100.65 billion. However, the latest data show that the growth of goods exports in the first two months of the quarter has narrowed the gap over imports. Additionally, businesses, concerned about President-elect Donald Trump's proposed tariff hikes, may rush to import goods before he takes office, potentially reducing the export advantage and leaving trade as a drag on GDP growth for the fourth consecutive quarter.
Yellen announces that the Treasury will reach the debt limit by mid-January
Treasury Secretary Janet Yellen announced that her department will likely begin special accounting measures in mid-January to avoid breaching the US debt limit. A $54 billion reduction in debt on January 2 will provide temporary relief, but this extra capacity will likely be used up by January 14–23. At that point, Yellen said, the Treasury will rely on special measures to keep the government funded, without specifying how long these measures would last.
Japan's factory activity shrinks at slower pace
Japan's factory activity contracted at a slower rate in December, as declines in production and new orders eased, signaling a move towards stabilisation after recent drops. The final manufacturing PMI increased to 49.6 in December, marking the mildest contraction in three months. This was slightly above the flash reading of 49.5 and November’s 49.0, though still below the 50.0 mark. Production shrank for the fourth consecutive month, but the decline was slower than in November. Meanwhile, input prices rose at the fastest rate since August, driven by higher raw material and labor costs.
China urges local governments to give cash handouts for New Year
China’s central government has urged local authorities to provide financial aid to those struggling with living costs, ahead of the New Year and Lunar New Year. Local governments are encouraged to temporarily subsidize prices and connect social assistance to price changes. This is part of efforts to boost private consumption and aid economic recovery.
US Dollar fluctuates as caution continues at year-end
The 10-year government bond yield (interpolated) on the previous trading day was 2.273, +0.63 bps. The benchmark government bond yield (LB346A) was 2.239, +0.69 bps. Meantime, the latest closed US 10-year bond yields was 4.62, +4.0 bps. USDTHB on the previous trading day closed around 34.12, moving in a range of 34.04 – 34.075 this morning. USDTHB could be closed between 33.90 – 34.20 today. The dollar index is trading within a very tight range on Friday, holding near 108.00 mark. Markets remain cautious, and thin year-end trading conditions limit volatility. The Euro ended a shortened week with a modest bounce, inching up to around 1.0430 on Friday. Meanwhile, The Japanese Yen gains ground against the bucks on Friday. The USD/JPY pair pulls back from its recent movement as the yen strengthens following the release of inflation data.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
