· USDTHB: moving in the range 37.22-37.38 this morning, supportive level at 37.20 resistance level at 37.40
· SET Index: 1,633.5 (-0.31%), 21 Sep 2022
· S&P 500 Index: 3,789.9 (-1.73%), 21 Sep 2022
· Thai 10-year government bond yield (interpolated): 2.98 (+0.36 bps), 21 Sep 2022
· US 10-year treasury yield: 3.51 (-6.00 bps), 21 Sep 2022
- Fed raises interest rates by 0.75% as expected, pledges more hikes to fight inflation
- ADB cuts China growth outlook as global risks rise
- Japan consumer prices stay elevated in August
- Putin announces a partial military mobilization for Ukraine
- Dollar soars as Putin ramps up tensions, Fed flags more rate hikes
Fed raises interest rates by 0.75% as expected, pledges more hikes to fight inflation The U.S. Federal Reserve announced interest rate hike by 0.75% at its September meeting, the third such outsized rate increase in a row, bringing the Fed rate to 3.00%-3.25% and increasing the cost of everything from credit card debt and mortgages to company financing. The Fed officials also signaled the intention of continuing to hike until the funds level hits a terminal rate or would reach of 4.4% by the end of the year and not start coming down until 2024. The Fed expects the rate rises to hit the job market – raising unemployment from 3.7% to 4.4% next year – housing prices and to lower economic growth.
ADB cuts China growth outlook as global risks rise The Asian Development Bank (ADB) cut its economic growth forecast for China from 5.0% to 3.3% in 2022 and from 4.8% to 4.5% in 2023 (September vs April forecast), as Beijing pursues a zero-Covid strategy that has devastated the world’s second-largest economy. Chinese officials are under pressure to curb even the smallest virus outbreaks swiftly, ahead of a key political meeting in October where President Xi Jinping is expected to secure an unprecedented third term. Excluding China, the rest of developing Asia will grow 5.3% in both 2022 and 2023, which is the rest of developing Asia will grow faster than China.
Japan consumer prices stay elevated in August The annual inflation rate in Japan rose to 3.0%yoy in August or 0.4%mom from 2.6%yoy in July. This was the 12th straight month of increase in consumer prices and the fastest pace since September 2014, amid surging food and fuel cost following Russia's invasion of Ukraine as well as a slump in yen. Main upward pressure primarily came from cost of food, transport, fuel, light and water charges, clothes, housing, furniture, education, culture & recreation, and miscellaneous. On the flip side, cost continued to fall for medical care. Core consumer prices were at 2.8%yoy, the most since October 2014, after a 2.4%yoy rise in July.
Putin announces a partial military mobilization for Ukraine President Vladimir Putin has ordered Russia's first military mobilization since World War II, warning the West that if it continued what he called its "nuclear blackmail" that Moscow would respond with the might of all its vast arsenal. His aim was to liberate east Ukraine's Donbas region, and that most people in the region did not want to return to what he called the "yoke" of Ukraine. The decision to partially mobilized was fully adequate to the threats we face, namely, to protect our homeland, its sovereignty and territorial integrity, to ensure the security of our people and people in the liberated territories.
Dollar soars as Putin ramps up tensions, Fed flags more rate hikes The 10-year government bond yield (interpolated) on the previous trading day was 2.98, +0.36 bps. The benchmark government bond yield (LB31DA) was 2.81, -1.00 bps. LB31DA could be between 2.75-2.85. Meantime, the latest closed US 10-year bond yields was 3.51, -6.00 bps. USDTHB on the previous trading day closed around 37.17 Moving in a range of 37.22-37.38 this morning. USDTHB could be closed between 37.20-37.40 today. The U.S. dollar climbed near a 20-year high to 110.0 level as Putin raised tensions over Ukraine, and another substantial Federal Reserve interest rate hike. The euro felt the brunt of the losses, with EURUSD falling 0.7% to 0.9903, falling close to its lowest level just below 0.99 since near the start of September.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
