- USDTHB: moving in the range 35.68-35.94 this morning, supporting level of USDTHB is around 35.80 resistance level is around 36.00
- SET Index: 1,625.9 (-0.62%), 19 Aug 2022
- S&P 500 Index: 4,228.5 (-1.30%), 19 Aug 2022
- Thai 10-year government bond yield (interpolated): 2.60 (+13.85 bps), 19 Aug 2022
- US 10-year treasury yield: 2.98 (+10.00 bps), 19 Aug 2022
- China Cuts LPR Rates for Second Time this Year
- Eurozone Current Account Surplus Narrows in June
- German Producer Inflation Hits Fresh Record Peak
- Asia shares in the red, yuan slides on strong dollar
China Cuts LPR Rates for Second Time this Year The People's Bank of China lowered its key rates for corporate and household loans at August fixing, the second reduction this year, as the board stepped up efforts to revive borrowing demand amid repeated COVID-19 outbreaks and lingering property downturn. The one-year loan prime rate (LPR) was cut by 5 bps to a record low of 3.65%, while the 5-year LPR which influences the pricing of home mortgages slashed for the second time this year by 15 bps to 4.30%, as policy makers sought to shore up the property sector. The move came after the central bank lowering the one-year medium-term lending facility (MLF) rate and another short-term liquidity toll last week, as authorities looked to boost credit demand in a stuttering economy.
Eurozone Current Account Surplus Narrows in June The Euro Area current account surplus narrowed sharply to EUR 3.2 billion in June of 2022 from EUR 27.6 billion in the corresponding month of the previous year, as the goods surplus shrank to EUR 4.3 billion from EUR 31.4 billion due rising import’s value on the back of higher energy costs. Meanwhile, the services surplus widened to EUR 16.4 billion from EUR 9.9 billion; and the primary income deficit fell to EUR 3 billion from EUR 3.2 billion while the secondary income shortfall rose to EUR 14.4 billion from EUR 10.6 billion.
German Producer Inflation Hits Fresh Record Peak Annual producer inflation in Germany rose to a new record high of 37.2% in July of 2022 from 32.7% a month earlier and above market forecasts of 32%. Energy prices remained the biggest upward contributor for 105.0% compared to 86.1% in June, namely the distribution of natural gas, 163.8%, and electricity, 125.4%. Excluding energy, producer prices climbed 14.6% from a year earlier. On a monthly basis, producer prices were up 5.3%, the most on record, after June's print and consensus of a 0.6% gain.
Asia shares in the red, yuan slides on strong dollar The 10-year government bond yield (interpolated) on the previous trading day was 2.60, +13.85 bps. The benchmark government bond yield (LB31DA) was 2.48, +8.0 bps. LB31DA could be between 2.43-2.52. Meantime, the latest closed US 10-year bond yields was 2.98, +10.00 bps. USDTHB on the previous trading day closed around 35.72 Moving in a range of 35.68-35.94 this morning. USDTHB could be closed between 35.80-36.00 today. Asian shares slipped on Monday and the dollar extended its climb amid angst over global growth as most major banks keep raising rates, while a modest easing by China served only to highlight troubles in its property market. Gold prices held below $1,750 an ounce on Monday after tumbling 3% last week, as a string of hawkish remarks from US policymakers lifted the dollar and Treasury yields. Meanwhile, markets are currently priced for a slightly higher chance of a 50-basis point rate increase in September. Investors now look ahead to Fed Chair Jerome Powell’s speech at the annual symposium in Jackson Hole.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
