JAKARTA (TheInsiderStories) – China’ Renmimbi (RMB) fell to an 11-year low against the US dollar and stocks dropped as the trade dispute with the United States (US) escalated. The onshore RMB slumped as much as 0.7 percent to 7.15 against the US dollar, the weakest since February 2008 and its second-biggest one-day drop of the month.
Amid the dispute, US’ President Donald Trump believed Beijing wanted to make a trade deal by saying China had contacted his trade officials and asked to resume talks. He also said that he might be re-evaluating his move.
In the Group Seven (G7) Summit, French’ President Emmanuel Macron has threatened to block a European trade deal with Brazil and other South American countries over the Amazon wildfires. In the meeting, G7 countries have agreed to an immediate $20 million fund to help Amazon countries fight wildfires and launch a long-term global initiative to protect the rainforest.
In the sidelines meeting of G7, Trump and Japan’ Prime Minister Shinzo Abe agreed on a trade deal pact. Japan will slash tariffs on US beef, pork, other agricultural products, and continuing to face existing levies on its own auto exports.
While German Chancellor Angela Merkel is hailing what she describes as a “big step forward” on Iran at the G7 Summit. A constructive discussion was built at the summit which was followed by a surprise visit by Iran’ foreign minister for discussions.
On the Brexit issues, the European Union says the United Kingdom must pay the divorce bill even there is a no-deal scenario. Previously, Britain Prime Minister Boris Johnson proposed to the amount of divorce planned from will only pay 9 billion pounds ($11 billion) instead of the 39 billion pound liability agreed by former premier Theresa May under a no-deal Brexit.
In the country, protest in Papua continued showed by another series of rallies in several towns of the province. On Monday, about 5,000 peoples took to the streets of Deiyai near to Jayapura city, carrying four Morning Star flags, a banned symbol used by independence supporters.
Italian Eni S.p.A (BIT: ENI) has been awarded the West Ganal exploration block in the Kutei basin off Indonesia together with its partners’ state-owned energy producer PT Pertamina and British’ Neptune Energy by the Indonesian government.
Yesterday, Indonesian Rupiah and the Jakarta Composite Index (JCI) in the red zone territory. Rupiah down 0.19 percent to 14,243 over the Greenback compared to last weekend while the composite index dropped 0.66 percent to 6,214.51.
Analysts rated, the weakening is influenced by trade war sentiment. Otherwise, they said, there was a positive sentiment from domestic regarding President Joko Widodo’ announcement to relocated the new capital city to East Kalimantan.
Today, the Rupiah is estimating will move in the range 14,200-Rp 14,300 against the US dollar. While the JCI is estimating in the range 6,123 – 6,302.
While, the analysts recommended PT Adaro Energy Tbk (IDX: ADRO), PT Jasa Marga Tbk (IDX: JSMR), PT AKR Corporindo Tbk (IDX: AKRA), PT Kalbe Farma Tbk (IDX: KLBF), PT Indofood Sukses Makmur Tbk (IDX: INDF), and PT Bank Central Asia Tbk (IDX: BBCA) stocks to be watch today.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia