- USDTHB: moving in the range 36.715-36.815 this morning
- SET Index: 1,633.9 (0.73%), 6 Sep 2022
- S&P 500 Index: 3,908.2 (-0.41%), 6 Sep 2022
- Thai 10-year government bond yield (interpolated): 2.81 (5.18 bps), 6 Sep 2022
- US 10-year treasury yield: 3.33 (13.0 bps), 6 Sep 2022
· US ISM non-manufacturing PMI unexpectedly accelerates in August
· Stocks edges lower with soaring treasury yields
· China stocks jump with support by government stimulus
· Oil falls as demand worries outweigh OPEC+ quota cut
· Dollar hits its fresh 20-year peak
US ISM non-manufacturing PMI unexpectedly accelerates in August The ISM non-manufacturing purchasing managers index rose to 56.9 in August, marginally up from 56.7 in July while market participants previously predicted the dip of 56.1. Meanwhile, ISM non-manufacturing new orders received by services companies increased to 61.8 in August from 59.9 in previous month. Likewise, the sector’s employment measure moved higher to 50.2 from 49.1 in July suggesting tight labor market condition and adding further urgency for the Federal Reserve’s push to hike interest rates.
Stocks edges lower with soaring treasury yields US stocks lose a technical bounce as bond yields surges with the view that the Federal Reserve will stay hawkish as it weigh more on inflation confrontation than growth. The S&P 500 fell for 0.4%, considering as the sixth time in seven days, while the tech-heavy Nasdaq 100 underperformed. The yield on 10-year treasuries advanced to above 3.3% level. The U.S. dollar strengthened, while the Japanese yen hit a fresh 24-year low.
China stocks jump with support by government stimulus The Shanghai Composite jumped 1.36% to close at 3,243 while the Shenzhen Component gained 1.04% to 11,800 on Tuesday. The mainland stocks recover from recent selloff as Chinese authorities vowed to support the economy in the third quarter as the nation struggles with slowing growth from COVID-19 lockdowns and a potential energy shortage. The People’s Bank of China also announced a cut to the amount of foreign exchange required to be held by local institutions, indicating that the government plans to keep the yuan from falling any further.
Oil falls as demand worries outweigh OPEC+ quota cut Oil prices decreased after two-day rally as concerns over weaker demand and the prospects of more interest hikes overtook support from OPEC+’s first output target cut since 2020. Brent crude fell 3.4% to $92.48 and West Texas Intermediate (WTI) was down 0.6% to $86.37 on Tuesday. Extended COVID-19 lockdowns in Chengdu, China, have added to worries that high inflation and interest rate hikes will hit demand. The European Central Bank is widely expected to lift rates sharply when it meets on Thursday.
Dollar hits its fresh 20-year peak The 10-year government bond yield (interpolated) on the previous trading day was 2.81, 5.18 bps. The benchmark government bond yield (LB31DA) was 2.58, +5.0 bps. LB31DA could be between 2.56-2.62. Meantime, the latest closed US 10-year bond yields was 3.33, 13.0 bps. USDTHB on the previous trading day closed around 36.46 Moving in a range of 36.715-36.815 this morning. USDTHB could be closed between 36.40-36.90 today. The dollar index gained further ground above the 110 mark, up 0.557%, reaching levels not seen since June 2002. The yen weakened further, down 1.48% at 142.71 per dollar. The dollar is up 24% against the Japanese currency so far this year.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
