- USDTHB: moving in the range 35.96-36.03 this morning supportive level at 35.80 resistance level at 36.10
· SET Index: 1,382.1 (-0.84%), 28 Feb 2024
· S&P 500 Index: 5,069.8 (-0.17%), 28 Feb 2024
· Thai 10-year government bond yield (interpolated): 2.56 (+0.37 bps), 28 Feb 2024
· US 10-year treasury yield: 4.27 (-4.00 bps), 28 Feb 2024
- US consumer spending fuels strong fourth-quarter GDP growth
- Japan factory output falls at the fastest pace in nearly 4 years
- Australian retail sales disappoint in Jan amid inflation, rate pressure
- Dollar bounces before inflation data, bitcoin hits two-year high
US consumer spending fuels strong fourth-quarter GDP growth The US economy grew at a solid clip in the fourth quarter amid robust consumer spending, the government confirmed on Wednesday, which bodes well for the outlook this year despite a weak start because of bad weather. Gross domestic product increased at a 3.2% annualized rate last quarter, revised slightly down from the previously reported 3.3% pace, the Commerce Department's Bureau of Economic Analysis said in its second estimate of fourth-quarter GDP growth. Economists polled by Reuters had expected that GDP growth would be unrevised. The modest downward revision reflected a downgrade to private inventory investment, which was now estimated to have increased at a $66.3 billion rate instead of the previously reported $82.7 billion pace. Inventories subtracted 0.27% percentage point from GDP growth instead of being almost neutral as initially thought.
Japan factory output falls at the fastest pace in nearly 4 years Japan's January factory output fell at the fastest pace since May 2020, as a production downturn in motor vehicles adds to concerns about the fragility of an economy that slipped into recession late last year. Industrial output fell 7.5% in January from the previous month, data from the Ministry of Economy, Trade and Industry (METI) showed. It was slightly worse than the median market forecast for a 7.3% drop, with output sliding in 14 of the 15 industries surveyed by METI. The ministry also downgraded its assessment of industrial output for the first time since July last year, laying bare the challenges for the economy as it tries to recover from a recession at the end of last year. Production declined the most in motor vehicles, down 17.8% in January from the previous month.
Australian retail sales disappoint in Jan amid inflation, rate pressure Australian retail sales grew less than expected in January, extending a recent run of underperformance as high inflation and interest rates continued to chip away at consumer spending. Retail sales grew 1.1% month-on-month in January, data from the Australian Bureau of Statistics. The reading was lower than expectations of 1.6% but rebounded from the 2.7% decline seen in December. Thursday’s data furthered the notion that Australian retail spending has largely stagnated over the past year, amid persistent pressure on household finances from high inflation and interest rates. January’s increase in retail sales was also partially driven by a sharp fall in December, as year-end holiday spending slowed.
Dollar bounces before inflation data, bitcoin hits two-year high The 10-year government bond yield (interpolated) on the previous trading day was 2.56, +0.37 bps. The benchmark government bond yield (LB31DA) was 2.55, +1.00 bps. Meantime, the latest closed US 10-year bond yields was 4.27, -4.00 bps. USDTHB on the previous trading day closed around 35.97 Moving in a range of 35.96-36.03 this morning. USDTHB could be closed between 35.80-36.10 today. The dollar jumped against the euro and yen on Wednesday as investors positioned for US and European inflation data due on Thursday, with month-end portfolio rebalancing also likely to sway market direction. Bitcoin hit a more than two-year high, benefiting from strong overall market liquidity. The implied volatility used by banks to price three-month options on the euro against the dollar reached 6.01 on Wednesday, the highest since Feb. 15, and was last at 5.74. Volatility in major currency pairs has been declining, with the euro/dollar measure falling to the lowest since January 2022. Traders are focused on data to give further clues on when the Federal Reserve is likely to begin cutting rates. Those expectations have been pushed to June, from May, on strong economic growth, sticky inflation and more hawkish commentary from Fed officials.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
