Bank Indonesia (BI) reported the country' foreign exchange reserves lowered to US$133.7 billion in October from September stood at $135.2 billion - Photo: Special

JAKARTA (TheInsiderStories) – Asian shares and money markets shakened ahead United States (US) – China trade talks, ahead President Donald Trump’ speech, and the domestic political situation in Hong Kong. On Saturday, the American leader said that US – China trade talks were moving along “very nicely” but more slowly than he would have liked.

Trump also said there had been incorrect reporting about US readiness to lift tariffs. Last week, both officials said they had agreed to roll back tariffs, that already are in place in a “phase one” trade deal.

The observes rated various development in the global market has actually triggered new doubts about when the two countries will end a 16-month trade war. Beside, they expect Trump would announce that he is delaying a decision on whether to slap tariffs on imported European Union autos for another six months during his speech to the Economic Club of New York.

On Monday, the Dow ended up 0.04 percent, S&P 500 lost 0.20 percent and Nasdaq dropped 0.13 percent. In Asia, Japan’ Nikkei dithered either side of flat, South Korean stocks inched up 0.3 percent, and the Jakarta Composite Index (JCI) closed down 0.47 percent to 6,148.74.

In money markets, the British’ Pound hit a six-month high over the Euro after the Brexit Party leader Nigel Farage he did not contest previously Conservative held seats in the country’ election. On Monday, the Sterling risen 0.6 percent to GBP0.8582 per Euro.

The Euro itself edged up to US$1.1035 from a three-week low of $1.1015, Japanese Yen faded to $109.02 compared to Greenback, and Indonesian Rupiah weakened 0.38 percent to 14,067 per US dollar. Similarly, the middle rate of Bank Indonesia also eroded 0.14 percent to 14,040 against American Dollar.

On the commodity market, oil prices edged lower as the lack of progress on US – China trade negotiations and kept prices pressured though bullish inventory data offered some support. Last week, Genscape reported that crude oil stockpiles in Oklahoma fell 1.2 million barrels and Saudi Arabia has increased oil production to 10.3 million barrels per day.

This morning, West Texas Intermediate oil prices for December 2019 delivery on the New York Mercantile Exchange fell 0.40 percent to $56.63 a barrel and the price of Brent oil for January 2020 delivery on ICE Futures fell 0.53 percent to $62.18 per barrel.

On the bond market, state-owned firm, PT PP Tbk (IDX: PTPP) offered local bonds worth of Rp1.25 trillion ($89.29 million), which are offered in two series with interest rates of 8.25 percent and 8.50 percent per year. These bonds will be offered to investors on Nov. 21 – 22.

It said, the funds from this issuance will be used to refinance previous bonds worth Rp300 billion and the rest will be used to fund infrastructure development that is currently being handled.

Domestically, said the analysts, there is no positive sentiment strong enough to move the domestic exchange rate and the stock index. They also assessed that the Rupiah will continue correction even the central bank had intervened in the for exchange and bond markets through Domestic Non Delivery Forward trading.

For today, Rupiah its expecting move in the range of 14,020 – 14,090 over the US dollar. While, the JCI between 6,120 – 6,210 compared to prior day.

The stocks to be watch for today are PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Waskita Karya Tbk (IDX: WSKT), PTPP, PT Aces Hardware Indonesia Tbk (IDX: ACES), PT United Tractors Tbk (IDX: UNTR), PT Bank Mandiri Tbk (IDX: BMRI), PT Telkom Indonesia Tbk (IDX: TLKM), PT Unilever Indonesia Tbk (IDX: UNVR), PT Pakuwon Jati Tbk (IDX: PWON), and PT Indofood Sukses Makmur Tbk (IDX: ICBP).

US$1: Rp14,000

May you have a profitable day!

Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia