- USDTHB: moving in the range 34.68-34.90 this morning, supportive level at 34.75 resistance level at 35.00
· SET Index: 1,620.0 (-0.15%), 1 March 2023
· S&P 500 Index: 3,951.4 (-0.47%), 1 March 2023
· Thai 10-year government bond yield (interpolated): 2.58 (-0.91 bps), 1 March 2023
· US 10-year treasury yield: 4.01 (+9.00 bps), 1 March 2023
- U.S. mortgage interest rates remain at highest level since November
- Japan corporate capex rises despite weaker profits
- German inflation unexpectedly accelerates in February
- Dollar drops as commodity currencies gain on China optimism; euro rises on hot inflation
U.S. mortgage interest rates remain at highest level since November The average interest rate on the most popular U.S. home loan remained last week at its highest level since November as stronger-than-expected readings on inflation, job gains and consumer spending caused investors to hike their bets that the Federal Reserve will have to keep raising its policy rate through the summer. The average contract rate on a 30-year fixed-rate mortgage increased by 9 basis points to 6.71% for the week ended Feb. 24, data from the Mortgage Bankers Association (MBA) showed on Wednesday, a third weekly rise in mortgage rates after several weeks of declines. That rate has risen more than 50 basis points over the past month. The yield on the 10-year Treasury note acts as a benchmark for mortgage rates. Mortgage rates soared to more than 7% last October as the U.S. central bank raised its benchmark policy rate in 2022 at the fastest pace in 40 years but began to ebb after signs late last year that inflation was on the wane.
Japan corporate capex rises despite weaker profits Japanese companies raised spending on plant and equipment for a seventh straight quarter in the final three months of 2022, data released on Thursday showed, offering relief to policymakers counting on a private demand-led recovery from COVID. Ministry of Finance (MOF) data out on Thursday showed Japanese firms raised capital expenditure in October-December by 7.7% from the same period a year earlier. It was the seventh straight quarter of annual gains. The data is used to calculate revised gross domestic product (GDP) figures due on March 9. Preliminary estimates showed Japan’s economy rebounded an annualized 0.6% in the fourth quarter. The weaker-than-expected GDP growth was caused by a decline in capital spending, raising some doubt about whether the world’s No. 3 economy can return to growth through private-sector investment and wage hikes which would in turn boost consumption.
German inflation unexpectedly accelerates in February German consumer prices, harmonized to compare with other European Union countries, rose more than anticipated in February, pointing to no let-up in stubborn cost pressures and pushing up European Central Bank rate hike expectations. EU-harmonized prices rose by 9.3% compared with the same month a year before, preliminary data from the federal statistics office showed on Wednesday, beating analyst expectations of a rise of 9.0% and slightly higher than January's 9.2% increase. Compared to January, prices increased by 1.0%, the office added, also beating forecasts of a 0.7% month-on-month rise. Prices for food and energy in particular have risen since the start of the war in Ukraine and significantly influence inflation, said the statistics office.
Dollar drops as commodity currencies gain on China optimism; euro rises on hot inflation The 10-year government bond yield (interpolated) on the previous trading day was 2.58, -0.91 bps. The benchmark government bond yield (LB31DA) was 2.95, -3.0 bps. LB31DA could be between 2.70-3.20. Meantime, the latest closed US 10-year bond yields was 4.01 +9.00 bps. USDTHB on the previous trading day closed around 35.03 Moving in a range of 34.68-34.90 this morning. USDTHB could be closed between 34.70-35.20 today. The U.S. dollar fell across the board on Wednesday, weighed down by firmer commodity currencies that benefited from China's strong manufacturing activity data, as well as gains in the euro after German inflation soared last month and raised rate hike expectations in the euro zone. Along with the Australian and New Zealand dollars, China's yuan rose after data showed Chinese manufacturing activity expanded at its fastest pace in a decade, smashing expectations. The official manufacturing purchasing managers' index (PMI) shot up to 52.6 last month from 50.1 in January. China's non-manufacturing activity also grew at a faster pace in February, and the Caixin/S&P Global manufacturing PMI reading for last month surpassed market expectations.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
