- USDTHB: moving in the range 34.68-34.78 this morning supportive level at 34.60 resistance level at 34.85
· SET Index: 1,380.3 (+0.01%), 1 Dec 2023
· S&P 500 Index: 4,594.6 (+0.59%), 1 Dec 2023
· Thai 10-year government bond yield (interpolated): 2.98 (+0.82 bps), 1 Dec 2023
· US 10-year treasury yield: 4.22 (-15.00 bps), 1 Dec 2023
- US manufacturing mired in weakness, economy heading for slowdown
- Euro zone factory downturn eased a touch in November
- China new home prices inch up for third month in November
- US dollar falls on dovish remarks by Fed's Powell
US manufacturing mired in weakness, economy heading for slowdown US manufacturing remained subdued in November, with factory employment declining further as hiring slowed and layoffs increased, more evidence that the economy was losing momentum after robust growth last quarter. The survey from the Institute for Supply Management (ISM) on Friday followed on the heels of data on Thursday showing moderate growth in consumer spending and subsiding inflation in October. Economic activity is cooling as higher interest rates crimp demand. Most economists, however, do not expect a recession next year and believe the Federal Reserve will be able to engineer the hoped-for "soft landing. “The ISM said that its manufacturing PMI was unchanged at 46.7 last month. It was the 13th consecutive month that the PMI stayed below 50, which indicates contraction in manufacturing. That is the longest such stretch since the period from August 2000 to January 2002.
Euro zone factory downturn eased a touch in November The broad-based downturn in euro zone manufacturing activity eased slightly last month but the sector remained deeply rooted in contractionary territory, prompting factories to trim staffing levels for a sixth straight month. HCOB's final euro zone manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 44.2 in November from October's 43.1, above a preliminary estimate of 43.8. A reading below 50 indicates a contraction in activity. An index measuring output, which feeds into a composite PMI due on Tuesday and seen as a good gauge of economic health, climbed to 44.6 from 43.1. Sub-indices covering demand, exports, backlogs of work did all rise but remained firmly below breakeven.
China new home prices inch up for third month in November China's new home prices rose slightly for a third straight month in November, a private survey showed on Friday, as the crisis-hit property sector struggles to stabilize despite a slew of government support measures. Prices rose 0.05% on average from the previous month after gains of 0.07% and 0.05%, according to the survey by real estate research firm China Index Academy. Only 38 of the 100 cities surveyed reported increases in new home prices. China's property sector, which makes up about one-quarter of the world's second-biggest economy, has stumbled from crisis to crisis in a major blow to consumer and investor confidence, keeping economic growth from resuming a solid footing this year. Government support for the property sector in recent months has included easing curbs on home purchases and cutting mortgage costs.
US dollar falls on dovish remarks by Fed's Powell The 10-year government bond yield (interpolated) on the previous trading day was 2.98, +0.82 bps. The benchmark government bond yield (LB31DA) was 2.95, +1.50 bps. Meantime, the latest closed US 10-year bond yields was 4.22, -15.00 bps. USDTHB on the previous trading day closed around 35.27 Moving in a range of 34.68-34.78 this morning. USDTHB could be closed between 34.60-34.85 today. The dollar fell on Friday, after two days of gains, as Federal Reserve Chair Jerome Powell struck a cautious tone on further interest rate moves, saying that the risk of under- or over-tightening is now more balanced. The market viewed his comments as dovish, with investors pricing in expectations that the Fed is likely done raising rates. Powell said it was clear that US monetary policy was slowing the economy as expected, with a benchmark overnight interest rate "well into restrictive territory." Powell noted, however, that the Fed is prepared to tighten policy further if deemed appropriate. The US dollar index - which tracks the currency against six major counterparts - was last down 0.2% at 103.23 after ending November on Thursday with its weakest monthly performance in a year. It is poised to end lower for a third straight week.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
