- USDTHB: moving in the range 33.55-33.85 this morning supportive level at 33.50 resistance level at 34.00
- SET Index: 1,481.7 (+1.27%), 5 Nov 2024
- S&P 500 Index: 5,782.76 (+1.22%), 5 Nov 2024
- Thai 10-year government bond yield (interpolated): 2.433 (-0.92 bps), 5 Nov 2024
- US 10-year treasury yield: 4.26 (-5.00 bps), 5 Nov 2024
- US service sector activity surges to its highest level in over two year
- Japan's service sector contracts as sales weaken and confidence drops
- RBA keeps interest rates steady and plans to continue restrictive policy
- China's services sector strengthens as business conditions improve
- Dollar falls as US election nears, uncertainty prevails
US service sector activity surges to its highest level in over two year
The US service sector grew at its fastest pace in over two years in October, with the ISM non-manufacturing index rising to 56, the highest since July 2022. Economists had expected a decline to 53.8. The increase was driven by a rebound in the employment component, which rose to 53.0 from 48.1. Meanwhile, the Prices Paid component also saw a slight uptick, rising to 58.1 from 59.4, signaling continued price pressures, albeit at a slightly slower rate. New orders and business activity also showed solid growth, signaling continued economic momentum in Q4.
Japan's service sector contracts as sales weaken and confidence drops
The final services PMI fell to 49.7 in October from 53.1 in September, slightly above the flash reading of 49.3 but dipping below the 50.0 threshold for the first time since June. Labor shortages weighed on the business outlook, and new business growth slowed, while overseas demand contracted. The composite PMI, which combines manufacturing and services, dropped to 49.6 from 52.0, marking the lowest level since November of last year.
RBA keeps interest rates steady and plans to continue restrictive policy
The Reserve Bank of Australia kept interest rates unchanged, maintaining a restrictive monetary policy due to ongoing concerns over inflation. The RBA held its benchmark cash rate at 4.35%, unchanged since it was last raised a year ago, a decision widely expected by markets. While headline inflation slowed to 2.8% in Q3, mainly due to government electricity rebates, underlying inflation remained at 3.5%. The RBA's priority is returning inflation to its 2-3% target, with forecasts showing this may happen by 2026.
China's services sector strengthens as business conditions improve
China's services activity grew at its fastest pace in three months in October, with the Caixin/S&P Global services PMI rising to 52.0 from 50.3. This suggests Beijing's stimulus measures are improving business conditions. New business edged up to 52.1, though overseas demand slowed. Confidence hit a five-month high, with some firms boosting promotions for future sales. The Caixin/S&P Global Composite PMI also increased to 51.9 from 50.3.
Dollar falls as US election nears, uncertainty prevails
The 10-year government bond yield (interpolated) on the previous trading day was 2.433, -0.92 bps. The benchmark government bond yield (LB346A) was 2.43, +0.5 bps. Meantime, the latest closed US 10-year bond yields was 4.26, -5.0 bps. USDTHB on the previous trading day closed around 33.68, moving in a range of 33.55 – 33.85 this morning. USDTHB could be closed between 33.50 – 34.00 today. The dollar weakened as the index retreated from around 104.00, continuing its decline in US trading ahead of the election results and amid a risk-on sentiment in stocks, despite a strong ISM Non-Manufacturing report. The euro gained ground against the weaker dollar, pushing above the 1.0900 level, supported by EU-specific factors. Meanwhile, the Japanese yen strengthened, with USD/JPY falling below 152.00 as long-term US yields softened.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
