- USDTHB: moving in the range 34.245-34.27 this morning supportive level at 34.15 resistance level at 34.40
· SET Index: 1,410.4 (-0.21%), 27 Dec 2023
· S&P 500 Index: 4,781.6 (+0.14%), 27 Dec 2023
· Thai 10-year government bond yield (interpolated): 2.72 (-0.43 bps), 27 Dec 2023
· US 10-year treasury yield: 3.79 (-10.00 bps), 27 Dec 2023
- World stocks at highest in over a year on rate cut bets
- Japan Nov factory output falls on weaker autos
- China's industrial profits post double-digit gains but recovery uneven
- Bruised dollar wobbles as traders eye US rate cuts next year
World stocks at highest in over a year on rate cut bets World stocks rallied to their highest level in more than a year on Wednesday, while the US dollar hit a five-month low, as expectations mounted that key central banks such as the Federal Reserve will start to cut interest rates early next year. In line with expectations of lower interest rates, the benchmark 10-year Treasury yield fell to a five-month low, while the two-year Treasury yield tumbled to a low not seen in seven months. Investor hopes that monetary conditions might be loosening boosted the MSCI's gauge of stocks across the globe by 0.46% to a level not seen since October 2022. On Wall Street, the Dow Jones Industrial Average added 0.21%, while the S&P 500 and the Nasdaq Composite were flat. European shares edged up 0.21%, with trade subdued given public holidays across the region.
Japan Nov factory output falls on weaker autos Japan's factory output declined in November, weighed by falls in autos production and clouding the outlook for the export-reliant economy. Industrial production fell 0.9% in November from the previous month, data from the Ministry of Economy, Trade and Industry (METI) showed. The reading was better than the median market forecast for a 1.6% drop. Motor vehicle production, which has underpinned industrial output, fell 2.5% in November from the prior month due to slowdowns in the manufacturing of small cars and engines, a METI official said. Output of electrical machinery and information and communication electronics equipment also fell 3.5%, due to sluggish demand in semiconductor and integrated-circuit testing equipment, the official said.
China's industrial profits post double-digit gains but recovery uneven China's November industrial profits posted double-digit gains as overall manufacturing improved, although soft demand continued to constrain business growth expectations, emboldening calls for more macro policy support. The 29.5% profit rise came on top of a 2.7% increase in October and alongside a pickup in industrial output in November, although other sectors of the world's second-largest economy still missed forecasts. In the first 11 months of 2023, industrial earnings shrank 4.4% from a year earlier, further narrowing from a 7.8% decline in January to October, National Bureau of Statistics (NBS) data showed. Behind the November profit rise was an accelerated uptick in industrial profits and returns on investments over the month.
Bruised dollar wobbles as traders eye US rate cuts next year The 10-year government bond yield (interpolated) on the previous trading day was 2.72, -0.43 bps. The benchmark government bond yield (LB31DA) was 2.82, -8.00 bps. Meantime, the latest closed US 10-year bond yields was 3.79, -10.00 bps. USDTHB on the previous trading day closed around 34.46 Moving in a range of 34.245-34.27 this morning. USDTHB could be closed between 34.15-34.40 today. The dollar nursed steep losses on Thursday and was headed for a yearly decline after two years of strong gains as expectations of interest rate cuts from the Federal Reserve next year grip markets. With the year coming to a close, thin liquidity and limited moves are expected until the New Year. The dollar index, which measures the US currency against six rivals, fell to a fresh five month low of 100.81. The index fell 0.5% on Wednesday and is on course for a 2.6% decline this year, snapping two straight years of strong gains. Investor focus remains on the timing of the interest rate cuts from the Fed, with markets pricing in a 89% chance of a cut in March 2024, according to CME FedWatch tool. Futures imply as much as 158 basis points of Fed easing next year. Some analysts though remain unconvinced the US central bank would be so aggressive.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
