- USDTHB: moving in the range 37.80-37.95 this morning, supportive level at 37.70 resistance level at 38.00
· SET Index: 1,558.1 (-2.00%), 3 Oct 2022
· S&P 500 Index: 3,678.4 (+2.56%), 3 Oct 2022
· Thai 10-year government bond yield (interpolated): 3.21 (-0.66 bps), 3 Oct 2022
· US 10-year treasury yield: 3.67 (-16.00 bps), 3 Oct 2022
- U.S. manufacturing declined but stay above the line
- Euro Area manufacturing activity showing the biggest shrink since June 2020
- China property woes trigger decline in global cement output
- Sterling helped by tax cut U-turn, yen steadies past 145 per dollar
U.S. manufacturing declined but stay above the line The Institute for Supply Management (ISM) survey showed that the US ISM Manufacturing PMI declined to 50.9 in September from 52.8 in August. This was the lowest reading in over two years since May 2020 and was weaker than the market expectation of 52.2. Meanwhile, following four straight months of panelists’ companies reporting softening new orders rates, the September index reading reflects companies adjusting to potential future lower demand. Many Business Survey Committee panelists’ companies are now managing head counts through hiring freezes and attrition to lower levels, with medium- and long-term demand more uncertain.
Euro Area manufacturing activity showing the biggest shrink since June 2020 The S&P Global Eurozone Manufacturing PMI was revised lower to 48.4 in September 2022 from a preliminary of 48.5 and below the previous month at 49.6 in August, pointing to the biggest contraction in factory activity since June of 2020. There were further slides in both output and new orders, linked to high energy prices in some cases, while many firms downwardly adjusted their operating schedules in line with lower order books. Demand for eurozone goods sank sharply as high inflation and economic uncertainty reportedly squeezed client appetite. On the price front, inflationary pressures accelerated due to rising costs for energy although pressures arising from material shortages had reportedly faded slightly. Meanwhile, business confidence fell to its lowest level since May 2020, leading firms to cut purchasing activity further in anticipation of more challenging conditions.
China property woes trigger decline in global cement output According to data provided by the World Cement Association, global cement output fell 8%yoy to 1.9bn tonnes in the first six months of 2022. The global drop was caused by a 15% fall to 977mn tonnes in the volume of cement produced in China. Official data show new construction starts in China have fallen more than 40%yoy every month since April. The cement data are a sign of its mounting spillover effect on other industries that benefited from the previous construction boom. Other commodities, also, such as the steelmaking ingredient iron ore have been hit by the weakness in the China’s property sector.
Sterling helped by tax cut U-turn, yen steadies past 145 level The 10-year government bond yield (interpolated) on the previous trading day was 3.21, -0.66 bps. The benchmark government bond yield (LB31DA) was 3.00, +0.00 bps. LB31DA could be between 3.00-3.10. Meantime, the latest closed US 10-year bond yields was 3.67, -16.00 bps. USDTHB on the previous trading day closed around 38.07 Moving in a range of 37.80-37.95 this morning. USDTHB could be closed between 37.70-38.00 today. Sterling rose touching a one-week high of $1.128 after media reports of the u-turn, its highest level since September 22 after Britain reversed a plan to cut the highest rate of income tax while the Yen against US Dollar weakened past 145 yesterday (October 3) for the first time since September 22 when authorities intervened to prop up the currency last month, but this was a bit stronger this morning to 144.88 or 0.26%.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
