- USDTHB: moving in the range 34.005-34.06 this morning, supportive level at 33.90 resistance level at 34.06
· SET Index: 1,563.7 (+0.58%), 17 March 2023
· S&P 500 Index: 3,916.6 (-1.11%), 17 March 2023
· Thai 10-year government bond yield (interpolated): 2.45 (+1.43 bps), 17 March 2023
· US 10-year treasury yield: 3.39 (-17.00 bps), 17 March 2023
- U.S. consumer sentiment ebbs in March; inflation expectations fall
- Central banks try to calm markets after UBS deal to buy Credit Suisse
- Euro zone labor costs jump 5.7% y/y in Q4
- Oil prices rise on Fed liquidity support, Credit Suisse deal
U.S. consumer sentiment ebbs in March; inflation expectations fall U.S. consumer sentiment fell for the first time four months in March, though households expected inflation to subside over the next 12 months and beyond, a survey showed on Friday. The University of Michigan's preliminary March reading on the overall index of consumer sentiment came in at 63.4, down from 67 in the prior month. Economists polled by Reuters had forecast a preliminary reading of 67.0. The decline in sentiment was concentrated among lower-income, less-educated and younger consumers, as well as consumers with the top tercile of stock holdings, Hsu added. The survey's reading of one-year inflation expectations fell to 3.8%, the lowest since April 2021, from 4.1% in February. Its five-year inflation outlook dropped to 2.8%, falling below the narrow 2.9-3.1% range for only the second time in the last 20 months.
Central banks try to calm markets after UBS deal to buy Credit Suisse Some of the world’s largest central banks came together on Sunday to stop a banking crisis from spreading as Swiss authorities persuaded UBS Group AG on Sunday to buy rival Credit Suisse Group AG in a historic deal. UBS will pay 3 billion Swiss francs ($3.23 billion) for 167-year-old Credit Suisse and assume up to $5.4 billion in losses in a deal backed by a massive Swiss guarantee and expected to close by the end of 2023. Soon after the announcement late on Sunday, the U.S. Federal Reserve, European Central Bank and other major central banks came out with statements to reassure markets that have been walloped by a banking crisis that started with the collapse of two regional U.S. banks earlier this month.
Euro zone labor costs jump 5.7% y/y in Q4 Euro zone labor costs jumped in the last three months of 2022 and third-quarter data was revised up as well, but the rise of the wage component was still roughly half the increase in consumer inflation, data showed on Friday. The European Union's statistics office Eurostat said labor costs in the 19 countries that shared the euro in the last quarter of 2022 rose 5.7% year-on-year, with wages up 5.1% and non-wage labor costs up 7.7%. Labor costs were revised upwards to 3.7% year-on-year from 2.9% reported earlier and wage growth to 3.0% from 2.1% Consumer inflation was 9.2% year-on-year in December, down from 10.1% in November and 10.6% in October, giving an average of 10% for the quarter. Euro zone wages grew fastest in construction, up 6.5% in the fourth quarter against the same period of 2021, followed by services, where pay rose 5.7% with industry up only 4.4%.
Oil prices rise on Fed liquidity support, Credit Suisse deal The 10-year government bond yield (interpolated) on the previous trading day was 2.45, +1.43 bps. The benchmark government bond yield (LB31DA) was 2.46, +1.00 bps. LB31DA could be between 2.00-2.50 Meantime, the latest closed US 10-year bond yields was 3.39, -17.00 bps. USDTHB on the previous trading day closed around 34.24 Moving in a range of 34.005-34.06 this morning. USDTHB could be closed between 33.90-34.30 today. Oil prices rose on Monday, recouping some recent losses as the Federal Reserve and other major central banks announced new liquidity measures to stabilize financial markets, while a takeover of beleaguered Swiss lender Credit Suisse helped ease fears of a banking crisis. Crude markets were still nursing their worst weekly loss this year as investors sold heavily on concerns that an economic slowdown this year will stymie oil demand. Anticipation of a Fed meeting this week also kept gains limited on Monday. But with the Fed, European Central Bank and other major central banks pledging to increase market liquidity to support the banking sector, fears of an imminent banking crisis were somewhat assuaged. The move came shortly after Swiss bank UBS Group AG announced that it will buy beleaguered peer Credit Suisse Group in a “historic deal” facilitated by regulators, which helped ease concerns over a broader banking rout.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC