- USDTHB: moving in the range 35.90-35.98 this morning supportive level at 35.80 resistance level at 36.10
· SET Index: 1,386.3 (-0.07%), 16 Feb 2024
· S&P 500 Index: 5,005.6(-0.48%), 16 Feb 2024
· Thai 10-year government bond yield (interpolated): 2.58 (+0.63 bps), 16 Feb 2024
· US 10-year treasury yield: 4.30 (+6.00 bps), 16 Feb 2024
- Strong services price increases lift US producer inflation in January
- Japan Dec core machinery orders rise, recovery seen limited
- China's travel spending during Lunar New Year holidays beats pre-COVID levels
- Dollar steady after producer prices push back on Fed rate cut outlook
Strong services price increases lift US producer inflation in January The producer price index for final demand rose 0.3% last month, the largest increase since August 2023, after declining by a revised 0.1% in December, the Labor Department's Bureau of Labor Statistics said. Economists polled by Reuters had forecast the PPI gaining 0.1% following a previously reported 0.2% drop. In the 12 months through January, the PPI increased 0.9% after climbing 1.0% in December. Services increased 0.6%, the largest rise since July 2023, boosted by a 2.2% jump in hospital outpatient care. The surge in these costs was attributed to strong wage increases over the past year. Portfolio management fees surged 5.5%, likely driven by higher stock market prices. There were also increases in wholesale prices of hotel and motel rooms as well as legal services. But the cost of transporting freight by road decreased 1.0%. Services, at the core of the fight against inflation, dropped 0.1% in December.
Japan Dec core machinery orders rise, recovery seen limited Japan's core machinery orders in December rose slightly more than expected but remained down year-on-year, government data showed, although further gains are expected to be capped by global and domestic headwinds. Core orders, a highly volatile data series regarded as a leading indicator of capital spending in the coming six to nine months, went up 2.7% in December from the previous month, Cabinet Office data showed. That compared with the median forecast for a 2.5% rise by economists in a Reuters poll. On a year-on-year basis, core orders, which exclude volatile numbers from shipping and electric utilities, declined 0.7%, smaller than the forecast 1.4% fall.
China's travel spending during Lunar New Year holidays beats pre-COVID levels Tourism revenues in China during the Lunar New Year holidays that ended on Saturday surged by 47.3% year-on-year and surpassed 2019 levels, thanks to a domestic travel boom amid a longer-than-usual break. The data may offer temporary relief to policymakers as the world's second-largest economy has been facing deflationary risks amid weak consumer demand, but the sustainability of the tourism boost is uncertain and the tourism revenue per trip remained below the pre-pandemic level. Domestic tourism spending jumped by 47.3% to 632.7 billion yuan ($87.96 billion) from the same holiday period in 2023, according to the data by the Ministry of Culture and Tourism. The number of domestic trips made during this year's holiday grew by 34.3% from a year ago, totalling 474 million. Compared to the 2019 Lunar New Year holiday before the COVID pandemic struck the country, domestic tourism spending rose 7.7% and domestic trips increased 19%, according to the ministry's data.
Dollar steady after producer prices push back on Fed rate cut outlook The 10-year government bond yield (interpolated) on the previous trading day was 2.58, +0.63 bps. The benchmark government bond yield (LB31DA) was 2.56, +2.00 bps. Meantime, the latest closed US 10-year bond yields was 4.30, +6.00 bps. USDTHB on the previous trading day closed around 36.11 Moving in a range of 35.90-35.98 this morning. USDTHB could be closed between 35.80-36.10 today. The dollar retreated amid concerns about the strength of the US economy after higher-than-expected producer prices raised expectations that the Federal Reserve will desist from cutting interest rates until at least the middle of the year. The rise in producer prices reported by the Labor Department was the largest in five months and followed a hotter-than-expected report on Tuesday for consumer prices last month. But data for US retail sales in January showed the sharpest drop in 10 months, giving some in the market pause as the report suggested slowing momentum in consumer spending as sales were revised lower in November and December too.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
