- USDTHB: moving in the range 36.66-36.76 this morning supportive level at 36.50 resistance level at 36.80
· SET Index: 1,351.5 (+0.13%), 30 May 2024
· S&P 500 Index: 5,235.5 (-1.34%), 30 May 2024
· Thai 10-year government bond yield (interpolated): 2.83 (+1.01 bps), 30 May 2024
· US 10-year treasury yield: 4.55 (-6.00 bps), 30 May 2024
- Consumers curb US economic growth in first quarter
- Tokyo CPI inflation grows as expected in May, but remains sluggish
- China manufacturing activity unexpectedly shrinks in May
- Dollar lower ahead of key inflation data Friday
Consumers curb US economic growth in first quarter The US economy grew more slowly in the first quarter than previously estimated after downward revisions to consumer spending and a key measure of inflation ticked down, keeping the Federal Reserve on track to possibly begin cutting interest rates at least once before the end of the year. Gross domestic product - the broadest measure of economic activity - grew at an 1.3% annualized rate from January through March, down from the advance estimate of 1.6% and notably slower than the 3.4% pace in the final three months of 2023. The first-quarter growth downgrade suggests the US central bank's aim of gradually cooling the economy through high interest rates is having an impact as consumers increasingly balk at higher prices, although it remains uncertain whether the weakening trend in inflation will continue. Corporate profits dropped for the first time in a year, falling 0.6% to $3.39 trillion from the fourth quarter's record high.
Tokyo CPI inflation grows as expected in May, but remains sluggish Tokyo consumer price index inflation grew as expected in May amid some pick-up in spending, but still remained around levels that spurred persistent doubts over the Bank of Japan’s plans to raise interest rates further this year. Core CPI inflation- which excludes volatile fresh food prices, grew 1.9% in May, official data showed on Friday. The reading was in line with expectations and picked up from the 1.6% seen in April. Headline CPI inflation grew 2.2%, improving from the 1.8% seen in April. A core inflation reading that excludes both fresh food and energy prices, and is watched closely by the BOJ, fell to 1.7% in May from 1.8% in the prior month, remaining well below the BOJ’s 2% annual target. Tokyo inflation data usually acts as a bellwether for nationwide inflation in Japan, with May’s reading suggesting that consumer spending picked up only marginally through the month.
China manufacturing activity unexpectedly shrinks in May Chinese manufacturing activity unexpectedly contracted in May, purchasing managers index data showed on Friday, as an initial boost from bumper stimulus measures by Beijing now appeared to be running out of steam. Manufacturing PMI read 49.50 in May, data from the National Bureau of Statistics showed. The reading was weaker than expectations of 50.5, and contracted from the 50.4 seen in April. A reading below 50 indicates contraction, with the manufacturing PMI now shrinking after two months on expansion. Friday’s data showed that manufacturing activity- which is a key driver of the world’s second-largest economy- was slowing down despite continued stimulus measures from Beijing. The sector was battered by middling overseas demand and sluggish local consumption, and had also contracted for most of 2023. But PMI data on Friday showed weakness in Chinese business activity extended beyond the manufacturing sector. China’s non-manufacturing PMI rose 51.1 in May, weaker than expectations of 51.5, and April’s reading of 51.2.
Dollar lower ahead of key inflation data Friday The 10-year government bond yield (interpolated) on the previous trading day was 2.83, +1.01 bps. The benchmark government bond yield (LB31DA) was 2.82, +1.00 bps. Meantime, the latest closed US 10-year bond yields was 4.55, -6.00 bps. USDTHB on the previous trading day closed around 36.90. Moving in a range of 36.66-36.76 this morning. USDTHB could be closed between 36.50-36.80 today. The dollar fell after revised data showed that gross domestic product, the broadest measure of economic activity, grew at slower pace than previously expected in the first quarter. The Commerce Department reported the US economy grew at an 1.3% annualized rate from January through March, down from the advance estimate of 1.6% after downward revisions to consumer spending.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
