- USDTHB: moving in the range 36.00-36.36 this morning, supporting level of USDTHB is around 35.70 resistance level is around 36.70
- SET Index: 1,593.2 (+1.06%), 1 Aug 2022
- S&P 500 Index: 4,118.6 (-0.28%), 1 Aug 2022
- Thai 10-year government bond yield (interpolated): 2.58% (-0.13 bps), 1 Aug 2022
- US 10-year treasury yield: 2.60 (-7.00 bps), 1 Aug 2022
- The Fed enacted its rate increase to a range of 2.25-2.5% amid slower domestic demand
- Eurozone manufacturing sector fell deeper into contraction in July
- China banks may face a huge loss from property crisis
- Gold hits near one-month high on dollar weakness
The Fed enacted its rate increase to a range of 2.25-2.5% amid slower domestic demand The Board of Governors of the Federal Reserve System (Fed) voted unanimously to raise the interest rate in July-meeting, stating that the unemployment rate recently held at 3.6% and close to full employment in June. Meanwhile, inflation remains elevated further at 9.1%YoY, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures. Therefore, Fed hikes interest rates by 0.75 pp for second consecutive time. The balance sheet, on the other hand, also tightened, which has declined $16 billion since the beginning of the roll-off, though the Fed set a cap of up to $47.5 billion that potentially could have been wound down eventually hitting $95 billion a month by September.
Eurozone manufacturing sector fell deeper into contraction in July The S&P Global Eurozone Manufacturing PMI fell below the crucial 50.0 mark in July to 49.8, from 52.1 in June, which is the 25 month-low level, signaling the sharpest decline in production since the initial wave of strict COVID-19 lockdowns in May 2020. The downturn strengthened amid a reduction in new orders which, aside from those seen during the pandemic restrictions, was the sharpest since the eurozone sovereign debt crisis in 2012 as steep inflation squeezed demand. The stronger downturn reflected deteriorating manufacturing sector conditions across the largest economies such as Germany, France, Italy, and Spain with recorded below-50.0 level.
China banks may face a huge loss from property crisis According to data from the People’s Bank of China, pointed out that the exposure of Chinese banks to the property sector tops that of any other industry. There were 39 trillion yuan of outstanding mortgages and another 13 trillion yuan of loans to developers at the end of March. S&P Global Ratings estimated that 2.4 trillion yuan ($356 billion), or 6.4% of mortgages may face mortgage losses in a worst-case scenario. About 7% of outstanding mortgage loans could be impacted if the defaults spread (Deutsche Bank’s estimate). Besides, Chinese banks have raised a record amount of capital in the first half from bond sales as they prepare for a potential spike in soured loans.
Gold hits near one-month high on dollar weakness The 10-year government bond yield (interpolated) on the previous trading day was 2.51, -6.5 bps. The benchmark government bond yield (LB31DA) was 2.50, -5.00 bps. LB31DA could be between 2.45-2.55. Meantime, the latest closed US 10-year bond yields was 2.60, -7.00 bps. USDTHB on the previous trading day closed around 36.05 Moving in a range of 36.00-36.36 this morning. USDTHB could be closed between 35.70-36.70 today. Dollar currently hits lowest since mid-June around 105.4, a weaker dollar makes gold less expensive for buyers holding other currencies. Spot gold was up 0.37% at $1,771.71 per ounce, having earlier hit its highest since July 5 at $1,774.95. U.S. gold futures settled 0.4% higher at $1,789.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
