- USDTHB: moving in the range 33.865-33.90 this morning supportive level at 33.70 resistance level at 34.00
- SET Index: 1,361.8 (+0.68%), 22 Jan 2025
- S&P 500 Index: 6,086.4 (+0.61%), 22 Jan 2025
- Thai 10-year government bond yield (interpolated): 2.348 (-6.64 bps), 22 Jan 2025
- US 10-year treasury yield: 4.60 (+3.0 bps), 22 Jan 2025
- ECB policymakers support additional interest rate cuts
- Japan’s exports rise as Trump’s tariff impact looms
- China unveils plan to encourage insurance funds into stock markets
- South Korea’s economy struggles amid political turmoil
- The US dollar traded sideways awaiting direction
ECB policymakers support additional interest rate cuts
European Central Bank policymakers showed strong support for additional interest rate cuts on Wednesday, suggesting that a reduction next week is almost certain, with further cuts likely to follow. According to Lagarde's remarks in Davos, the policy direction is clear, and while the pace depends on data, a gradual move is likely. Meanwhile, Klaas Knot also expressed support for rate cuts on January 30 and March 6, citing "encouraging" economic data. Similarly, Yannis Stournaras endorsed gradual adjustments, advocating for 25 basis point reductions and suggesting that the ECB's 3% deposit rate should approach 2% by year-end.
Japan’s exports rise as Trump’s tariff impact looms
Japan’s exports rose 2.8% in December, driven by a weaker yen and strong demand for chip-making machinery and semiconductor parts, exceeding the 2.4% forecast. Imports increased 1.8%, led by machinery and related goods. The yen averaged 152.48 per dollar, 3.8% weaker year-on-year. This helped exporters but made imports more expensive. The trade balance swung to a surplus of ¥130.9 billion ($837 million) for the first time in six months.
China unveils plan to encourage insurance funds into stock markets
China announced that it will guide state insurers and commercial insurance funds to increase investments in the A-share market to boost the struggling stock market. A plan from six financial regulators requires state-owned insurers to raise their investments in mainland-listed Chinese stocks and equity funds. The plan also introduces a long-term performance evaluation, with annual equity returns weighted at no more than 30% and 60% for a three-to-five-year cycle. This comes as Chinese stocks start 2025 with losses amid fears of potential U.S. tariffs on Chinese goods.
South Korea’s economy struggles amid political turmoil
South Korea’s economy struggled last quarter, with President Yoon Suk Yeol’s brief martial law declaration dampening consumer confidence amid slowing export growth. GDP grew just 0.1% in the fourth quarter, falling short of the 0.2% forecast. Year-on-year, the economy rose 1.2%, below the expected 1.4%. For 2024, the economy expanded by 2%, slower than the anticipated 2.1%.
The US dollar traded sideways awaiting direction
The 10-year government bond yield (interpolated) on the previous trading day was 2.348, -6.64 bps. The benchmark government bond yield (LB346A) was 2.34, -6.0 bps. Meantime, the latest closed US 10-year bond yields was 4.60, +3.0 bps. USDTHB on the previous trading day closed around 33.91, moving in a range of 33.865 – 33.90 this morning. USDTHB could be closed between 33.70 – 34.00 today. The dollar remained mostly unchanged on the day, following a recovery in the index after dipping below the 108.00 mark, in a session with little economic data and while market participants considered President Trump's recent tariff threats. Attention now shifts to Trump's pre-recorded interview. The euro eventually lost ground after struggling to maintain the gains seen earlier in the European session, with the currency weighed down by Trump's tariff threat against the EU and a series of comments from the ECB. The Japanese yen weakened despite expectations of an upcoming rate hike from the BoJ on Friday, as USD/JPY advanced after rising above the 156.00 level, supported by stock market gains and a modest increase in US yields.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
