- USDTHB: moving in the range 35.015-35.09 this morning supportive level at 34.85 resistance level at 35.10
· SET Index: 1,408.2 (-0.37%), 11 Jan 2024
· S&P 500 Index: 4,780.2 (-0.07%), 12 Jan 2024
· Thai 10-year government bond yield (interpolated): 2.72 (+0.04 bps), 11 Jan 2024
· US 10-year treasury yield: 3.98 (-6.00 bps), 11 Jan 2024
- US inflation rises 0.3% in December, pushing annual rate to 3.4%
- China CPI picks up slightly in Dec, but disinflation remains in play
- Thai Dec consumer confidence at high of nearly 4 years on govt measures, tourism
- Dollar down on day, but off lows after hotter than expected inflation
US inflation rises 0.3% in December, pushing annual rate to 3.4% Headline US inflation accelerated in December, while an annual underlying reading slowed marginally, as Federal Reserve officials search for signs of easing price gains before rolling out possible interest rate cuts this year. The seasonally-adjusted year-on-year consumer price index (CPI) in the world's largest economy sped up to 3.4% last month, up from 3.1% in November, according to data from the Bureau of Labor Statistics. Month-on-month, the pace increased to 0.3%, driven by increased shelter and energy costs. Economists had seen the figures at 3.2% and 0.2%, respectively. Meanwhile, the rate of the so-called "core" measure, which strips out volatile items like food and energy, ticked down to 3.9% annually from 4.0% in the prior month.
China CPI picks up slightly in Dec, but disinflation remains in play Chinese consumer inflation increased slightly in December as the year-end holidays boosted spending, although a sustained decline in producer inflation showed that a disinflationary trend was still decidedly in play. Consumer price index (CPI) inflation grew 0.1% month-on-month in December, data from the National Bureau of Statistics showed. The reading was lower than expectations for a rise of 0.2%, but picked up from a 0.5% drop seen in the prior month. Year-on-year, CPI inflation fell 0.3%, slightly beating estimates for a drop of 0.4% and improving from the 0.5% fall seen in November. The marginal improvement in CPI inflation was driven chiefly by increased holiday spending on travel and shopping.
Thai Dec consumer confidence at high of nearly 4 years on govt measures, tourism Thai consumer confidence rose in December, reaching the highest level in 46 months, boosted by government measures to ease living costs and increased tourism. The consumer index of the University of the Thai Chamber of Commerce increased to 62.0 in December from 60.9 the previous month, the university said in a statement. Consumer confidence rose for the fifth straight month, suggesting consumer confidence should continue to increase, particularly if the government can quickly boost the economy this year with its planned policies, the university said. The government is forging ahead its controversial digital wallet handout program, which involves a 500 billion baht ($14.3 billion) plan to transfer 10,000 baht ($286) to 50 million people to spend within six months.
Dollar down on day, but off lows after hotter than expected inflation The 10-year government bond yield (interpolated) on the previous trading day was 2.72, +0.04 bps. The benchmark government bond yield (LB31DA) was 2.70, +1.0 bps. Meantime, the latest closed US 10-year bond yields was 3.98, -6.00 bps. USDTHB on the previous trading day closed around 35.01 Moving in a range of 35.019-35.09 this morning. USDTHB could be closed between 34.85-35.10 today. The dollar was down on the day against the euro and the yen on Thursday but off lows reached before data showed that US consumer price inflation came in above economists' expectations in December, raising some doubts that the Federal Reserve will cut rates as soon as traders expect. Bitcoin also surged to a two-year high as several exchange-traded funds (ETFs) tied to the spot price of the cryptocurrency began trading. The headline US Consumer Price Index (CPI) rose 0.3% last month, for an annual gain of 3.4%, against expectations of 0.2% and 3.2%, respectively. The cost of shelter, which includes rents, hotel and motel stays as well as school housing, accounted for more than half of the increase in the CPI. Traders are pricing in aggressive expectations for rate cuts this year, with the Fed seen as beginning to cut rates in March.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
