· USDTHB: moving in the range 37.011-37.095 this morning, supportive level at 36.95 resistance level at 37.15
· SET Index: 1,638.6 (+0.43%), 20 Sep 2022
· S&P 500 Index: 3,855.9 (-1.13%), 20 Sep 2022
· Thai 10-year government bond yield (interpolated): 2.98 (+2.85 bps), 20 Sep 2022
· US 10-year treasury yield: 3.57 (+8.00 bps), 20 Sep 2022
- US building permits slump 10% in August, but housing starts bounce
- ECB’s Lagarde raises prospect of rate hikes beyond neutral level
- Sweden lifts interest rates by full percentage point with more to come
- Oil prices fall further on demand fears; fed rate hike looms
US building permits slump 10% in August, but housing starts bounce The number of permits given to build new houses slumped in August, as higher building and borrowing costs tempered demand, but housing starts still posted their biggest monthly gain in over a year. Building permits fell 10% from July to 1.517 million, their lowest level in two years. However, housing starts surprisingly bounced by over 12% to 1.575 million, comfortably beating expectations for a figure roughly unchanged from July. The bounce in housing starts was most notably in multi-family units, which tend to represent cheaper and smaller living spaces. They rose to 621,000, their highest since 1986. Single-family housing starts, by contrast, rose by a more modest 3.4% to 934,000, a figure that is well below recent months' average of over 1 million.
ECB’s Lagarde raises prospect of rate hikes beyond neutral level The European Central Bank may need to raise interest rates to a level that restricts economic growth in order to cool demand and combat unacceptably high inflation, ECB President Christine Lagarde said on Tuesday. The ECB has been raising rates at the fastest pace on record, but inflation is still rising and even longer-term expectations, a key focus for policymakers, are starting to move above the bank’s 2% target. “If there were evidence that high inflation risked de-anchoring inflation expectations, then the policy rate that is compatible with our target would lie in restrictive territory,” she said in a speech. The nominal neutral is seen somewhere between 1.5% and 2%, well above the ECB’s 0.75% deposit rate.
Sweden lifts interest rates by full percentage point with more to come Sweden's central bank raised interest rates on Tuesday by a larger-than-expected full percentage point to 1.75% and warned of more to come over the next six months as it sought to get to grips with surging inflation. Inflation hit 9% - a 30-year high - in August as the effects of soaring energy prices spread through the economy and has overshot the Riksbank's forecasts. The rate hike was the biggest since the inflation target was adopted in 1993, equaling the full percentage point hike of November 1992 during Sweden's domestic financial crisis when the main rate hit 500% for a short period.
Oil prices fall further on demand fears; fed rate hike looms The 10-year government bond yield (interpolated) on the previous trading day was 2.98, +2.85 bps. The benchmark government bond yield (LB31DA) was 2.78, +3.0 bps. LB31DA could be between 2.75-2.80. Meantime, the latest closed US 10-year bond yields was 3.57, +8.00 bps. USDTHB on the previous trading day closed around 36.93 Moving in a range of 37.011-37.095 this morning. USDTHB could be closed between 36.95-37.10 today. Oil prices extended losses on Wednesday as traders feared more pressure on crude demand from a widely anticipated interest rate hike by the Federal Reserve, while signs of a potential build in U.S. gasoline inventories also weighed. The Fed is expected to raise interest rates by at least 75 basis points (bps) at the conclusion of a two-day meeting on Wednesday. The move will be the bank’s fifth hike this year, as it moves to temper runaway inflation in the country.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
