- USDTHB: moving in the range 36.58-36.645 this morning supportive level at 36.50 resistance level at 36.70
· SET Index: 1,345.7 (-0.43%), 31 May 2024
· S&P 500 Index: 5,283.4 (+0.91%), 31 May 2024
· Thai 10-year government bond yield (interpolated): 2.82 (-1.13 bps), 31 May 2024
· US 10-year treasury yield: 4.41 (-10.00 bps), 31 May 2024
- US factory activity, construction spending both fall
- Euro zone manufacturing sees potential signs of recovery in May, PMI shows
- China's manufacturing surges, Caixin PMI shows, but global risks grow
- US dollar sinks to three-week low on signs of slowing economy
US factory activity, construction spending both fall US manufacturing activity slowed for a second straight month in May as new goods orders dropped by the most in nearly two years, and spending on construction projects slipped unexpectedly the month before, the latest indications that a gradual slowdown in the economy is taking hold. The Institute for Supply Management's manufacturing purchasing managers index for May fell to 48.7 from 49.2 in April, the research group said on Monday, noting an increase in references to "softening" among survey respondents. It was both the second straight decline and the second month below the 50 level that separates growth from contraction. Economists polled by Reuters had a median estimate for 49.6. Meanwhile, construction spending fell unexpectedly for a second month in April on declines in non-residential activity, although there was an improvement in single-family home building.
Euro zone manufacturing sees potential signs of recovery in May, PMI shows The long-running downturn in euro zone manufacturing may have turned a corner last month, according to a survey which showed new orders declined at their slowest pace in two years, leading to improved business confidence. HCOB's final euro zone manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 47.3 in May from April's 45.7, below the 50 mark denoting growth in activity for a 23rd month. It was just shy of a 47.4 preliminary estimate. An index measuring output, which feeds into a composite PMI due on Wednesday and is seen as a good gauge of economic health, jumped from April's 47.3 to a 14-month high of 49.3, albeit below the 49.6 flash estimate.
China's manufacturing surges, Caixin PMI shows, but global risks grow China's factory activity grew the fastest in about two years in May due to production gains and new orders, particularly at smaller firms, a private sector survey showed on Monday, lifting the outlook for the second quarter. The Caixin/S&P Global manufacturing PMI rose to 51.7 in May from 51.4 the previous month, the highest since June 2022, and beating analysts' forecasts of 51.5. The 50-point mark separates growth from contraction. To counter soft domestic demand and a years-long property crisis, China has boosted infrastructure investment and ploughed funds into high-tech manufacturing to bolster the broader economy this year. However, the full effects of its industry policy support have yet to be felt by businesses and workers.
US dollar sinks to three-week low on signs of slowing economy The 10-year government bond yield (interpolated) on the previous trading day was 2.82, -1.13 bps. The benchmark government bond yield (LB31DA) was 2.83, +0.00 bps. Meantime, the latest closed US 10-year bond yields was 4.41, -10.00 bps. USDTHB on the previous trading day closed around 36.75. Moving in a range of 36.58-36.645 this morning. USDTHB could be closed between 36.50-36.70 today. The dollar fell to a three-week low on Monday after data showed the US economy is gradually slowing down with weaker-than-expected readings on manufacturing and construction spending, suggesting that the Federal Reserve is on track to start cutting interest rates later this year. The dollar index, a measure of the US currency's value against six major currencies, fell 0.4% to 104.14. The index earlier dropped to 104.13, the lowest since mid-May. The greenback also slid a two-week trough against the yen following the data and was last down 0.7% at 156.22. The euro gained 0.5% versus the dollar to $1.0897 , after earlier rising to a three-week high of $1.0898. Monday's data showed the US Institute for Supply Management's (ISM) purchasing managers index (PMI) for manufacturing fell to 48.7 in May, from 49.2 in April, sliding as well from an 18-month high of 50.3 seen in March.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
