Producer level deflation confirms that Consumer level inflation has reached its peak. US Final Demand PPI July MoM posted -0.5% deflation (Vs. Jun. +1.0%), as Headline CPI eased to 8.5% (Vs. Jun. 9.1) over the same period. Gasoline demand sloped in the summer, pushing the average retail price below USD4/Gallon or the lowest level since March 2022, while keeping US inflation under control. For the record, the price of gasoline had reached a record USD5.02/Gallon last June. The PPI and CPI ramps up bets on the Futures market, that the September FFR rises by +50Bps (Vs. Prev. +75Bps). Wall Street stock market strengthened and formed a Gap Up in early trading, before finally closing mixed.
Survey: BI 7DRRR in August remains at 3.50%; Technology sector rose 2.8%. Bloomberg data project that BI 7DRRR in August will remain at 3.50%. NHKSI Research sees that the government is maintaining the momentum of economic growth, taking advantage of BI’s low interest rates. The government is optimistic that FY22E GDP will grow +5.2%, after growing 5.01% YoY and 5.44% YoY in 1Q22 and 2Q22, respectively. Meanwhile, the volatility of shares in the coal subsector was supported by a positive catalyst for the price of Coal ICE Newcastle, which once again penetrated USD400/Ton. JCI was consistently in the green zone yesterday, making us project the JCI to move Consolidating/Pullback with Support: 7,145-7,090/7,050-7,020 and Resistance: 7,175/7,250/7,350.
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