- USDTHB: moving in the range 33.54-33.64 this morning, supportive level at 33.40 resistance level at 33.70
· SET Index: 1,673.9 (+0.01%), 6 Jan 2023
· S&P 500 Index: 3,895.1 (+2.26%), 6 Jan 2023
· Thai 10-year government bond yield (interpolated): 2.54 (-2.60 bps), 6 Jan 2023
· US 10-year treasury yield: 3.55 (-16.00 bps), 6 Jan 2023
- U.S. nonfarm payrolls grew 223k in December, jobless rate falls to 3.5%
- Eurozone CPI falls as energy subsidies bite, but core inflation rises again
- Japan's Nov real wages fall most in 8 years, defying BOJ objective
- Asia FX rallies on China reopening, yuan at over 4-mth high
U.S. nonfarm payrolls grew 223k in December, jobless rate falls to 3.5% The U.S. economy continued to add jobs at a solid clip in December, but wage growth cooled slightly, easing fears that the labor market is too hot to allow inflation to fall. The Labor Department said on Friday that nonfarm employment rose by 223,000 through the middle of last month, a modest slowdown from November's 256,000 and slightly more than the 200,000 expected by analysts. However, any upside 'surprise' was nullified by revisions that sliced 28,000 off the previous two months' data. By contrast, the jobless rate, typically seen as a good indicator of labor market tightness, fell to 3.5% from a downwardly revised 3.6%. That equals a record low stretching back over 50 years. The more broadly defined 'U6' unemployment rate, which gives a fuller picture of under-employment across the economy, likewise fell to 6.5% of the workforce from 6.7%.
Eurozone CPI falls as energy subsidies bite, but core inflation rises again Inflation in the Eurozone fell surprisingly sharply in December as the collapse in wholesale energy prices in recent months, combined with government measures to cap utility bills, started to make itself felt. The news will ease some of the pressure on the European Central Bank to tighten monetary policy aggressively in an environment where growth is also slowing sharply, but the figures still showed ‘core’ inflation running at an uncomfortably high level for the central bank. According to preliminary data from Eurostat, the Eurozone consumer price index fell 0.3%, its second straight decline, and a much weaker outturn than the 0.8% rise expected ahead of time by economists. The energy component of Eurostat’s price basket fell 6.5% on the month, also assisted by falling prices for gasoline and diesel. That brought the headline rate of inflation down to 9.2% from 10.1% in November. The CPI peaked at a euro-era high of 10.6% in October.
Japan's Nov real wages fall most in 8 years, defying BOJ objective Japan reported on Friday its worst real-wage decline in more than eight years, with November data highlighting the elusiveness of the central bank's objective of reinforcing inflation and the economy with sustained rises in workers' pay. The 3.8% annual fall in inflation-adjusted wages heightens the urgency of Prime Minister Fumio Kishida's push for upcoming talks between labor and management to deliver wage hikes that outpace rises in living costs. Japan wants inflation that is led by demand and higher pay, rather than the current cost-push inflation driven by high commodity prices and a weak yen. Bank of Japan Governor Haruhiko Kuroda has also repeatedly stressed the need for price rises to be accompanied by wage growth. While looking for that, the central bank is keeping its policy ultra-loose.
Asia FX rallies on China reopening, yuan at over 4-mth high The 10-year government bond yield (interpolated) on the previous trading day was 2.54, -2.60 bps. The benchmark government bond yield (LB31DA) was 2.64, -0.5 bps. LB31DA could be between 2.50-3.00. Meantime, the latest closed US 10-year bond yields was 3.55, -16.0 bps. USDTHB on the previous trading day closed around 33.99 Moving in a range of 33.54-33.64 this morning. USDTHB could be closed between 33.40-34.00 today. Most Asian currencies shot up on Monday, with the Chinese yuan hitting a four-month high after the country reopened its international borders, while hopes of a less hawkish rhetoric from the Federal Reserve also weighed on the dollar and supported regional units. The yuan jumped 0.7% to 6.7912 against the dollar, its strongest level since late-August, after China on Sunday opened its borders for international travel. The move marks the country’s biggest pivot away from its strict zero-COVID policy, which battered economic growth for the past three years. The offshore yuan also rose 0.5%, as traders bet on an eventual economic recovery from the reopening.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
