- USDTHB: moving in the range 35.50-35.54 this morning supportive level at 35.40 resistance level at 35.65
· SET Index: 1,547.9 (-0.05%), 5 Sep 2023
· S&P 500 Index: 4,496.8 (-0.42%), 5 Sep 2023
· Thai 10-year government bond yield (interpolated): 2.84 (+2.88 bps), 5 Sep 2023
· US 10-year treasury yield: 4.27 (+9.00 bps), 5 Sep 2023
- Euro zone August downturn deeper than was thought
- Japan Aug service activity growth fastest in 3 months
- South Korea's inflation quickens above forecast, keeping policymakers on watch
- US dollar rises on global growth worries; Aussie down
Euro zone August downturn deeper than was thought The decline in euro zone business activity accelerated faster than initially thought last month as the bloc's dominant services industry fell into contraction, according to a survey which suggests the bloc could drop into recession. HCOB's final Composite Purchasing Managers' Index (PMI), compiled by S&P Global and seen as a good barometer of overall economic health, dropped to 46.7 in August from July's 48.6, a low not seen since November 2020. That was below the 50 mark separating growth from contraction for a third month and shy of a preliminary estimate for 47.0. The headline services PMI sank to 47.9 from 50.9, below the flash 48.3 estimate, as indebted consumers feeling the pinch from increased borrowing fees and high living costs reined in spending.
Japan Aug service activity growth fastest in 3 months Japan's service sector activity expanded at its quickest pace in three months in August, underpinned by robust consumer spending as inbound tourism regained momentum. The relatively upbeat service sector conditions contrast with the manufacturing industry's shrinking activity and subdued business sentiment amid slowing global demand. The final au Jibun Bank Japan Services purchasing managers' index (PMI) grew to 54.3 last month from 53.8 in July, in line with the flash reading and stayed above the 50-benchmark dividing expansion from contraction for 12 consecutive months. The subindex measuring outstanding businesses swung back above the 50.0 threshold in August helped by the re-acceleration of new orders. Survey respondents noted stronger consumption thanks to higher customer numbers and demand on the back of a surge in inbound tourists. The number of visitors to Japan in July rose to its highest since the pandemic at 2.32 million people.
South Korea's inflation quickens above forecast, keeping policymakers on watch South Korea's annual consumer inflation accelerated to 3.4% in August while the month-on-month rate was the fastest since early 2017, which should keep policymakers on alert for any sustained uptick in prices. The Bank of Korea (BOK) last month held interest rates steady for a fifth straight meeting, as it continued to priorities price stabilization amid heightened growth risks. On a monthly basis, the consumer price index (CPI) rose 1.0% in August, after gaining 0.1% in the prior month, official data showed on Tuesday, beating economists' median forecast for a 0.3% rise in a Reuters survey. Annual inflation, which accelerated for the first time in seven months, also topped the 2.7% expected by economists, and marked the quickest since April. It followed a 2.3% rise in July, which was the slowest in 2 years.
US dollar rises on global growth worries; Aussie down The 10-year government bond yield (interpolated) on the previous trading day was 2.84, +2.88 bps. The benchmark government bond yield (LB31DA) was 2.80, +4.00 bps. Meantime, the latest closed US 10-year bond yields was 4.27, +9.00 bps. USDTHB on the previous trading day closed around 35.41. Moving in a range of 35.50-35.54 this morning. USDTHB could be closed between 35.40-35.65 today. The dollar rose to a near six-month high against a basket of currencies on Tuesday as jitters over global growth, particularly in China, caused investors to flock to the safe-haven U.S. currency. The Aussie dollar slumped after the Reserve Bank of Australia kept rates steady. China's services activity expanded at the slowest pace in eight months in August, as weak demand continued to dog the world's second-largest economy and stimulus failed to meaningfully revive consumption. The decline in euro zone business activity accelerated faster than initially thought last month as the bloc's dominant services industry fell into contraction, according to a survey which suggests the bloc could drop into recession.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
