- USDTHB: moving in the range 34.86-34.96 this morning supportive level at 34.80 resistance level at 35.00
· SET Index: 1,532.5 (+0.13%), 7 Aug 2023
· S&P 500 Index: 4,518.4 (+0.90%), 7 Aug 2023
· Thai 10-year government bond yield (interpolated): 2.62 (-1.91 bps), 7 Aug 2023
· US 10-year treasury yield: 4.09 (+4.0 bps), 7 Aug 2023
- Eurozone investor mood stops nosedive in August
- Indonesia Q2 GDP growth strongest in three quarters
- Thai inflation slower than expected in July, small rises seen
- US dollar gains as Fed comments on more rate hikes lend support
Eurozone investor mood stops nosedive in August Investor morale in the euro zone unexpectedly rose in August, ending three consecutive months of decline as inflation has lost some of its explosive power, but there are no signs of a lasting turnaround in sentiment. Sentix's index for the euro zone rose to -18.9 points in August from -22.5 in July, beating expectations of analysts polled by Reuters of a further drop, to a reading of -24.3. Germany in particular has become "the sick man" of the euro zone and is weighing heavily on the region, said Sentix managing director Patrick Hussy, with investor morale in Europe's largest economy falling to its lowest level since October 2022. The subindex for future expectations in the euro zone rose 7.3 points to -17.3, which Hussy attributed to easing in the expected rate of deterioration rather than positive sentiment. The "more lenient view" of the next six months is because investors see the issue of inflation as losing some of its explosive power.
Indonesia Q2 GDP growth strongest in three quarters Indonesia's economic growth in the second quarter accelerated unexpectedly to its highest rate in three quarters, shored up by strong household and government spending, even as exports weakened with falling commodity prices. Some economists still expect activity to slow in the second half of the year, with exports likely to keep falling due to weaker global demand and businesses potentially delaying investments ahead of general elections due in February 2024. The government plans to boost spending this quarter to reach its 5.3% growth target for the year. Separately, the finance ministry is projecting that GDP growth will be around 5.1% this year, highlighting risks of global economic slowdown impacting exports.
Thai inflation slower than expected in July, small rises seen Thailand's annual headline inflation was weaker than expected in July, helped by lower food and energy prices, and the commerce ministry said it projected smaller consumer price rises for the rest of the year. The headline consumer price index (CPI) increased 0.38% in July from a year earlier, compared with a forecast rise of 0.64% in a Reuters poll, and against June's 0.23% rise. It was the third successive month headline inflation was below the central bank's target range of 1% to 3%. The headline CPI in August could rise slightly as some food prices pick up due to drought, while energy prices are likely to increase. Average headline inflation, however, should remain low at 0.36% in the second half of 2023. In July, the core CPI rose 0.86% from a year earlier, compared with a forecast for a 0.90% rise in the poll, and against June's 1.32% increase.
US dollar gains as Fed comments on more rate hikes lend support The 10-year government bond yield (interpolated) on the previous trading day was 2.62, -1.91 bps. The benchmark government bond yield (LB31DA) was 2.63, -2.00 bps. LB31DA could be between 2.30-2.80. Meantime, the latest closed US 10-year bond yields was 4.09, +4.00 bps. USDTHB on the previous trading day closed around 34.76. Moving in a range of 34.86-34.96 this morning. USDTHB could be closed between 34.60-35.20 today. The dollar rose against major currencies on Monday, broadly supported by Federal Reserve officials saying additional interest rate hikes are likely given that inflation remains persistently high, and the labor market is still tight. Fed Governor Michele Bowman said additional interest rate hikes will likely be needed to lower inflation to the U.S. central bank's 2% target. Bowman, said she backed the latest rate increase last month because inflation remains too elevated, and job growth and other indications of activity show the economy has continued expanding at a "moderate pace.“ New York Fed President John C. Williams said, the central bank will need to keep the restrictive stance for some time.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
