JAKARTA (TheInsiderStories) – Good Morning! Chinese exports surged by 9.5 percent in Augusts from a year ago, a sign that one of superpower’ economy continuing to recovery despite escalating tensions with the United States (US). But, imports fell 2.1 percent in August after falling 1.4 percent in July.
Overall, the country’ trade surplus narrowed to $58.93 billion from $62.33 billion in July, with the US rose 27 percent in August from a year earlier. August shipments to America jumped 20 percent compared to same period in 2019 of $44.8 billion and imports of US goods rose by 1.8 percent to $10.5 billion.
While, US’ President Donald Trump intends to curb his country’ economic relationship with China, contrasting his contender in 2020 presidential election, Joe Biden. He also threatened to punish any American companies that create jobs overseas and do business in China from winning federal contracts.
In Indonesia, the central bank has an agenda to announces the consumer survey index in August. While, President Joko Widodo has schedule to lead a limited meeting on the kick off meeting examination of state financial management and responsibility in handling the pandemic and discussing preparations for the simultaneous regional election
On Monday, the country added 2,880 positive cases after a five-day run of more than 3,000 cases a day and bring its total to 196,989. The death toll also jumped to 8,130 or added 105 deaths.
Jakarta reported added 1,046 new cases, bringing the total number of confirmed cases to 47,379. It also saw a spike in daily death toll, with 22 for a total of 1,296. Only three of the country’ 34 provinces have reported more than 1,000 COVID-19 deaths so far namely Jakarta, West Java, and East Java.
On Monday, Indonesian Rupiah parked at the level of Rp14,740 per US dollar or appreciated 0.07 percent and the Jakarta Composite Index slightly weakened 0.18 percent to the level of 5230.19 compared to last week.
Analysts believe that the latest US economic outlook does not add strength to riskier assets along with the prospect of a weakening US Dollar. Its non-farm employment data for the August period fell from 1.734 million previously to 1.371 million. However, the US unemployment rate managed to fall from the previous 10.2 percent to 8.4 percent.
Domestically, investors concerns about a recession in Indonesia. However, data on foreign exchange reserves in August increased above expectations of US$137 billion. The increase in foreign exchange reserves was influenced by global bonds and the withdrawal of government loans.
Moreover, the Jakarta provincial government continues to extend the large-scale social restrictions, which makes the prospects for domestic economic growth tend to stagnate due to a decline in public consumption and investment growth which tends to be flat.
With the various information, they estimated that the Rupiah will move in the range of 14,710 – 14,800 against the American dollar and the JCI between 5,200 – 5,340. Stocks that can be observed for today are PT Erajaya Swasembada Tbk (IDX: ERAA), PT Barito Pacific Tbk (IDX: BRPT), PT HM Sampoerna Tbk (IDX: HMSP), and PT Bank Central Asia Tbk (IDX : BBCA).
Then, PT Adaro Energy Tbk (IDX: ADRO), PT Astra Agro Lestari Tbk (IDX: AALI), PT Vale Indonesia Tbk (IDX: INCO), PT Telkom Indonesia Tbk (IDX: TLKM), PT Gudang Garam Tbk (IDX: GGRM), PT Ramayana Lestari Sentosa Tbk (IDX: RALS), and PT Indocement Tunggal Perkasa Tbk (IDX: INTP) stocks.
May you have a profitable Day!
Written by Linda Silaen, Please Read Our News to Get More information about Indonesia