- USDTHB: moving in the range 33.62-33.67 this morning supportive level at 33.55 resistance level at 33.80
- SET Index: 1,301.0 (-0.26%), 4 Feb 2025
- S&P 500 Index: 6,037.9 (+0.72%), 4 Feb 2025
- Thai 10-year government bond yield (interpolated): 2.309 (-0.34 bps), 4 Feb 2025
- US 10-year treasury yield: 4.52 (-2.0 bps), 4 Feb 2025
- China investigates Google and imposes tariffs on US products
- US job openings fall to 7.6 million, the lowest since September
- US Factory orders decline more than anticipated
- Thailand is considering boosting US imports to reduce its trade surplus
- USD weakened after tariff delay on Mexico and Canada
China investigates Google and imposes tariffs on US products
China responded to Donald Trump’s initial trade war tariffs by targeting a few American companies and imposing tariffs on select US goods, aiming to prevent further escalation between the two largest economies. Beijing implemented a 15% tax on under $5 billion worth of US energy imports and a 10% fee on American oil and agricultural equipment on Tuesday, right after the new US tariffs took effect. Additionally, China announced it would investigate Google for alleged antitrust violations. In addition, Authorities blacklisted PVH Corp. and Illumina Inc., affecting their operations in China, and imposed new export controls on tungsten and other critical metals used in electronics, aviation, and defense. Nonetheless, the Chinese tariffs are scheduled to take effect on February 10, possibly allowing space for negotiation.
US job openings fall to 7.6 million, the lowest since September
The December JOLTS report showed job openings fell to 7.6 million, below the expected 8.0 million. Hires and separations remained steady at 5.5 million and 5.3 million, respectively. The vacancy rate dropped to 4.5%, while the quits rate stayed at 2.0%. Analysts noted that low layoffs continue to support positive job growth, despite slower hiring. They also highlighted that the job openings-to-unemployed ratio has remained stable in recent months.
US Factory orders decline more than anticipated
Factory orders fell 0.9% in December, slightly more than the expected 0.7% drop. Excluding transportation, orders rose 0.3%. Shipments increased 0.6%, and unfilled orders dropped 0.5%. The unfilled orders-to-shipments ratio fell to 6.93, while inventories grew 0.4%, lowering the inventories-to-shipments ratio to 1.46.
Thailand is considering boosting US imports to reduce its trade surplus
A government official announced that Thailand plans to boost its imports of US ethane and agricultural products to safeguard its export-driven economy amid trade war threats from the Trump administration. The Thai government has instructed local petrochemical companies to increase their US ethane purchases by a minimum of 1 million tons, worth approximately $200 million. Additionally, Thai feed mills will import more soybean meal and other agricultural items to include in animal feed for cattle, poultry, and pigs, although the exact volume of these imports has not been disclosed.
USD weakened after tariff delay on Mexico and Canada
The 10-year government bond yield (interpolated) on the previous trading day was 2.309, -0.34 bps. The benchmark government bond yield (LB346A) was 2.32, +0.0 bps. Meantime, the latest closed US 10-year bond yields was 4.52, -2.0 bps. USDTHB on the previous trading day closed around 33.90, moving in a range of 33.62 – 33.67 this morning. USDTHB could be closed between 33.55 – 33.80 today. The dollar declined after a one-month delay in tariffs on Mexico and Canada, while the new 10% tariff on China took effect and prompted immediate retaliation, though it led to only a small market response. Additionally, disappointing economic data and recent statements from the Fed had minimal impact. The euro gained from the dollar's weakness, rising solidly above 1.0300. Meanwhile, the Japanese yen strengthened due to the recent increase in Japanese yields.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
