- USDTHB: moving in the range 35.06-35.15 this morning supportive level at 35.00 resistance level at 35.40
· SET Index: 1,358.0 (-1.17%), 13 Dec 2023
· S&P 500 Index: 4,707.1 (+1.36%), 13 Dec 2023
· Thai 10-year government bond yield (interpolated): 2.85 (-0.48 bps), 13 Dec 2023
· US 10-year treasury yield: 4.04 (-16.00 bps), 13 Dec 2023
- US producer prices unchanged amid cheaper energy products
- Euro zone industry output falls by more than expected in October
- Japan Oct machinery orders unexpectedly rise despite economic uncertainty
- Dollar drops as Fed signals coming rate cuts
US producer prices unchanged amid cheaper energy products US producer prices were unexpectedly unchanged in November amid cheaper energy goods, and underlying inflation pressures at the factory gate were muted. The report from the Labor Department was consistent with a sluggish manufacturing sector and offered hope that overall inflation would continue to subside. Federal Reserve officials were wrapping up their two-day meeting on Wednesday. The US central bank is expected to keep its policy rate unchanged in the current 5.25%-5.50% range, having raised it by 525 basis points since March 2022. The unchanged reading in the producer price index for final demand in November reported by the Labor Department's Bureau of Labor Statistics followed a revised 0.4% drop in October. The PPI was previously reported to have declined 0.5% in October. Economists polled by Reuters had forecast the PPI gaining 0.1% last month.
Euro zone industry output falls by more than expected in October Euro zone industrial production declined by more than expected in October, with the sharpest drop for capital goods such as machinery, reinforcing survey indications that the single-currency area is in a recession. The European Union's statistics office Eurostat said on Wednesday that industrial production in the 20 countries sharing the euro fell by 0.7% month-on-month in October for a 6.6% year-on-year drop. Economists polled by Reuters had expected declines of 0.3% in the month and 4.6% from a year earlier. The month-on-month fall was chiefly the result of a 1.4% decline of output of capital goods, as well as 0.6% falls for intermediate and non-durable consumer goods, such as food and clothing. Production of energy was up 1.1% and of durable consumers goods by 0.2%.
Japan Oct machinery orders unexpectedly rise despite economic uncertainty Japan's core machinery orders unexpectedly rose in October, climbing for a second straight month, but remained down year-on-year as uncertainty about the global economy pared companies' appetite for fresh investments. Core orders, a highly volatile data series regarded as a leading indicator of capital spending in the coming six to nine months, were up 0.7% in October from the previous month, Cabinet Office data showed. That compared with the median forecast for a 0.5% decline by economists in a Reuters poll. On a year-on-year basis, core orders, which exclude volatile numbers from shipping and electric utilities, slipped 2.2%, the data showed. It was better than a forecast for a 5.1% drop. The government, though, retained its view that machinery orders were "stalling.“
Dollar drops as Fed signals coming rate cuts The 10-year government bond yield (interpolated) on the previous trading day was 2.85, -0.48 bps. The benchmark government bond yield (LB31DA) was 2.83, -1.00 bps. Meantime, the latest closed US 10-year bond yields was 4.04, -16.00 bps. USDTHB on the previous trading day closed around 35.75 Moving in a range of 35.06-35.15 this morning. USDTHB could be closed between 35.00-35.40 today. The dollar tumbled against the euro and yen on Wednesday after the Federal Reserve signaled in new economic projections that US interest rate increases have come to an end and lower borrowing costs are coming in 2024. A near unanimous 17 of 19 Fed officials project that the policy rate will be lower by the end of 2024, with the median projection showing the rate falling three-quarters of a percentage point from the current 5.25%-5.50% range. No officials see rates higher by the end of next year. The Fed kept interest rates steady for the third meeting in a row, as was widely expected. Traders are now pricing in a 72% probability of a rate cut in March, up from 49% earlier on Wednesday, and a 94% likelihood by May, according to the CME Group's (NASDAQ:CME) FedWatch Tool.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
