- USDTHB: moving in the range 34.285-34.34 this morning supportive level at 34.10 resistance level at 34.40
- SET Index: 1,464.7 (-0.34%), 8 Nov 2024
- S&P 500 Index: 5,995.5 (+0.37%), 8 Nov 2024
- Thai 10-year government bond yield (interpolated): 2.438 (-0.62 bps), 8 Nov 2024
- US 10-year treasury yield: 4.30 (-1.0 bps), 8 Nov 2024
- Michigan consumer sentiment jumps in November
- China announces $1.4 trillion local debt plan, no new stimulus
- China's consumer prices rise at four-month low, despite stimulus
- The dollar is on track for a weekly gain following Trump's election victory
Michigan consumer sentiment jumps in November
US consumer sentiment rose to a seven-month high in early November, driven by optimism about the economy and personal finances. The University of Michigan’s preliminary sentiment index reached 73, above expectations. Current conditions slightly dropped to 64.4, while expectations surged to 78.5, the highest since July 2021. Inflation expectations were mixed: one-year expectations fell to 2.6%, the lowest since December 2020, while long-term expectations rose to 3.1%. The report also highlighted a 6% increase in personal finance expectations and a 9% jump in short-term business conditions. Long-term business conditions reached their best level in nearly four years. It's important to note that the data was collected before the election results were released.
China announces $1.4 trillion local debt plan, no new stimulus
China has provided struggling local governments with a 10 trillion yuan ($1.4 trillion) financial boost but refrained from introducing additional stimulus measures, keeping options open for addressing a potential trade conflict when Donald Trump takes office next year. During a press briefing in Beijing on Friday, officials outlined a plan to move “hidden” local debt onto public balance sheets. The funds for this initiative, which was previously announced but lacked specific details or a timeline, will be allocated through 2028, following approval from the country’s top legislative body. Nonetheless, at the start of the press conference, there was clear disappointment, as investors had been anticipating the fiscal policies from that campaign for weeks, with media coverage raising expectations for increased spending to support the property market and stimulate consumption.
China's consumer prices rise at four-month low, despite stimulus
China's consumer prices increased at the slowest pace in four months in October, while producer price deflation deepened, despite Beijing's intensified stimulus efforts to bolster the struggling economy. The consumer price index (CPI) rose by 0.3% year-on-year, down from a 0.4% gain in September and the lowest since June, falling short of the 0.4% increase expected. However, core inflation picked up, rising 0.2% in October, compared to a 0.1% increase in September. At the same time, producer prices dropped 2.9% from a year earlier, a deeper decline than the 2.8% fall in September and worse than the 2.5% drop expected. This marked the largest decrease in 11 months.
The dollar is on track for a weekly gain following Trump's election victory
The 10-year government bond yield (interpolated) on the previous trading day was 2.438, -0.62 bps. The benchmark government bond yield (LB346A) was 2.41, -1.00 bps. Meantime, the latest closed US 10-year bond yields was 4.30, -1.00 bps. USDTHB on the previous trading day closed around 34.05, moving in a range of 34.285 – 34.34 this morning. USDTHB could be closed between 34.10 – 34.40 today. The dollar index strengthened again on Friday, continuing its weekly uptrend as markets react to the prospect of a Trump Presidency. The dollar’s movement was mainly influenced by post-election developments, amid a volatile week. In the near term, market updates for the dollar are expected to be light due to Monday’s US Veterans Day holiday, with attention turning to Wednesday’s US CPI report and Friday’s Retail Sales data. The euro ended the week above 1.07, after briefly dipping below. The yen closed around 152.7, while the pound softened against the dollar, finishing just above 1.29 after the Bank of England's rate cut.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
