- USDTHB: moving in the range 35.86-35.91 this morning supportive level at 35.70 resistance level at 36.00
· SET Index: 1,370.7 (-0.83%), 29 Feb 2024
· S&P 500 Index: 5,096.3 (+0.52%), 29 Feb 2024
· Thai 10-year government bond yield (interpolated): 2.56 (+0.38 bps), 29 Feb 2024
· US 10-year treasury yield: 4.25 (-2.00 bps), 29 Feb 2024
- Services drive US prices higher in January; inflation gradually cooling
- Japan unemployment rate remains steady at 2.4% in Jan as expected
- China manufacturing activity shrinks as expected in Feb
- Dollar gains in choppy trading, inflation meets expectations
Services drive US prices higher in January; inflation gradually cooling US prices accelerated in January amid a surge in the costs of services like housing and finance, but the annual increase in inflation was the smallest in three years, keeping a mid-year interest rate cut from the Federal Reserve on the table. The report from the Commerce Department on Thursday also showed consumer spending slowing last month, restrained by decreases in outlays on goods, including motor vehicles, furniture and other long-lasting household equipment. The inflation and consumer spending readings were in line with economists' expectations. But with the costs of services increasing by the most in 12 months, likely as businesses raised prices at the start of the year, the timing of the first Fed rate cut remains uncertain. Most economists do not expect the price increases to repeat in February.
Japan unemployment rate remains steady at 2.4% in Jan as expected Japan’s unemployment rate remained steady in January as expected, staying close to one-year lows even as recent data pointed to more cooling in the Japanese economy. The unemployment rate stayed at 2.4%, official data showed on Friday, largely meeting market expectations. Japan’s jobs to applications ratio also remained steady at 1.27% in January. The reading comes even as recent data showed a bigger-than-expected decline in industrial production through January, while other readings also showed the country’s manufacturing sector shrank more than expected during the month. The trend also comes after Japan unexpectedly fell into recession in the fourth quarter of 2023.
China manufacturing activity shrinks as expected in Feb Chinese manufacturing activity shrank as expected in February, taking little support from increased demand during the Lunar New Year holiday as broader economic weakness persisted. The official manufacturing purchasing managers index read 49.1 in February, data from the National Bureau of Statistics showed on Friday. The reading was in line with expectations and worsened from the 49.2 seen in January. A reading below 50 indicates contraction, with the PMI now remaining in contraction for a fifth consecutive month. China's manufacturing sector is among the biggest drivers of economic growth in the country and is at the heart of a sluggish post-COVID rebound over the past year. In addition to weak local demand, the sector is also grappling with muted export demand as economic conditions in China's biggest export destinations remain dour.
Dollar gains in choppy trading, inflation meets expectations The 10-year government bond yield (interpolated) on the previous trading day was 2.56, +0.38 bps. The benchmark government bond yield (LB31DA) was 2.56, +0.00 bps. Meantime, the latest closed US 10-year bond yields was 4.25, -2.00 bps. USDTHB on the previous trading day closed around 35.92 Moving in a range of 35.86-35.91 this morning. USDTHB could be closed between 35.70-36.00 today. The dollar rose on Thursday in choppy trading and was on track for its second consecutive monthly gain against the euro and yen, overcoming an earlier dip after data showed that US inflation was as expected in January. The yen gained after a policymaker hinted at the need to exit ultra-easy policies, while bitcoin held near a more than two-year high reached on Wednesday. The dollar fell earlier on Thursday after data showed that US price gains in January were the smallest in nearly three years, keeping a June interest rate cut from the Federal Reserve on the table. The dollar index had hit a three-month high after the Consumer Price Index (CPI) released on Feb. 13 showed prices accelerated more than expected in January.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
