- USDTHB: moving in the range 36.715-36.75 this morning supportive level at 36.60 resistance level at 36.80
- SET Index: 1,301.0 (-0.65%), 28 June 2024
- S&P 500 Index: 5,460.5 (-0.41%), 28 June 2024
- Thai 10-year government bond yield (interpolated): 2.68 (-2.96 bps), 28 June 2024
- US 10-year treasury yield: 4.36 (+7.00 bps), 28 June 2024
- U.S. PCE slows as expected in May
- Far right wins first round in France election
- China's June factory activity continued to contract, while services experienced a slowdown
- Euro rises after France's first-round vote
U.S. PCE slows as expected in May
Personal Consumption Expenditures Price Index (PCE) slowed down as anticipated in May compared to the previous year. This development could potentially encourage the Fed to implement interest rate cuts in 2024. Over the 12 months leading to May, the headline PCE decreased from 2.7% to 2.6%. On a monthly basis, the index showed no change, following a 0.3% increase in April, marking the first time it did not rise in six months. Meanwhile, the core PCE, which excludes volatile items like food and fuel, saw a month-on-month increase of 0.1% and a year-on-year rise of 2.6%. Both the overall and underlying figures aligned with the predictions.
Far right wins first round in France election
Marine Le Pen’s far-right National Rally (RN) party has taken the lead in the first round of France’s parliamentary elections on Sunday, taking it closer to the gates of power than ever before. Following unusually high voter turnout, initial estimates indicate that the RN bloc has garnered 34% of the votes, placing them in the lead. The left-wing New Popular Front (NFP) coalition follows with 28.1%, while President Emmanuel Macron's Ensemble alliance has fallen to a disappointing third position with 20.3%
China's June factory activity continued to contract, while services experienced a slowdown
According to the National Bureau of Statistics (NBS), China's manufacturing sector experienced its second consecutive monthly decline in June, while services activity reached a five-month low. The data underscores ongoing calls for additional stimulus measures as the economy continues to face challenges in recovery. PMI for manufacturing remained unchanged at 49.5 in June, matching a median forecast of 49.5 from a Reuters poll and staying below the 50-mark. Meanwhile, China's non-manufacturing sector, which includes services and construction, expanded at a slower pace in June. The official non-manufacturing PMI dropped to 50.5 from 51.1 in May, reflecting consumer caution in spending amid a downturn in the property market and the fading boost from the May holiday period.
Euro rises after France's first-round vote
The 10-year government bond yield (interpolated) on the previous trading day was 2.68, -2.96 bps. The benchmark government bond yield (LB346A) was 2.71, -4.0 bps. Meantime, the latest closed US 10-year bond yields was 4.36, +7.00 bps. USDTHB on the previous trading day closed around 36.85 moving in a range of 36.715 - 36.75 this morning. USDTHB could be closed between 36.60-36.85 today. The U.S. dollar slipped on Friday after data showed inflation in the world's largest economy subsided last month, cementing expectations the Federal Reserve will start cutting interest rates this year. The euro rose on Monday after the first round of France's snap election put the far-right in pole position, though by a smaller margin than projected, while a downgrade to Japan's first-quarter growth figures knocked the yen lower.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
