JAKARTA (TheInsiderStories) – Good Morning! The weak manufacturing and gross domestic product (GDP) data of Germany, Europe’ largest economy, bring Euro close to its lowest since April 2017 at US$1.0836 in Asian market. Since early February, the single currency has lost 2.3 percent over the US Dollar.
The disappointing economic data raised concerns that the block monetary policy will have to remain accommodative for much longer. While, the Pound held steady at $1.3003 following a 0.3 percent decline in the previous session.
From Britain, Prime Minister Boris Johnson’ Europe adviser, David Frost said his country will not be threatened into following European Union (EU) rules to win a free trade agreement with the block. Last month, United Kingdom left the EU and the two sides will now start negotiating a new relationship from trade to security.
In Asia, Renmimbi held steady at RMB6.9882 a US dollar after China’ Hubei province, considered the epicenter of the coronavirus outbreak, said new cases of the illness fell slightly to 1,807 from 1,933, taking the total in the province to 59,989. The number of deaths in the province from a coronavirus outbreak rose by 93 to 1,789 as of Monday (02/17).
While, Japanese finance minister, Taro Aso, ensured that fiscal policy steps would be taken as needed to respond to the spreading coronavirus outbreak while closely monitoring its impact on the economy. On Monday, the government data showed Japanese economy had suffered its deepest contraction since 2014 in the October-December quarter.
In Indonesia, minister of finance Sri Mulyani Indrawati, minister of home affairs Tito Karnavian, minister of health Terawan Agus Putranto have schedule hearing with parliament on the Insurance Health agency. And, foreign minister Retno Marsudi met with team members who facilitated the return of Indonesian citizens from Wuhan, China this noon.
In addition, the ministry of finance targets Rp15 trillion from T-bills and bond auctions that mature in May 2020, February 2021, June 2025, September 2030, June 2035, April 2040, and May 2048. While, state-owned lender, PT Bank Rakyat Indonesia Tbk (IDX: BBRI) held a shareholders meeting.
Yesterday, Indonesian Rupiah edge up 0.24 percent to 13,660 over the Greenback and the Jakarta Composite Index strengthened 0.01 percent to 5,867.52 compared to last week. Investor sentiment lifted after Chinese government unveiled plans to reduce corporate taxes to help the economy.
Beside, the People’s Bank of China agreed to provide medium-term lending facilities (MLF) and 7-days repo to banks to protect their businesse from the coronavirus outbreak. The central bank also cut MLF interest rates by 10 basis points to 3.15 percent, the lowest since 2017.
Today, the analysts rated, both instruments still has a window to strengthen again. The Rupiah its expecting move in the range of and the JCI 5,839.59 to 5,767.4 compared to yesterday.
Stocks to be watch for today are PT Telekomunikasi Indonesia Tbk (IDX: TLKM), PT Unilever Indonesia Tbk (IDX: UNVR), PT Merdeka Copper Gold Tbk (IDX: MDKA), PT Jasa Marga Tbk (IDX: JSMR), PT Adhi Karya Tbk (IDX: ADHI), PT Bank Tabungan Negara Tbk (IDX: BBTN), PT XL Axiata Tbk (IDX: EXCL), PT HM Sampoerna Tbk (IDX: HMSP), and PT Waskita Karya Tbk (IDX: WSKT).
-Reuters contributed to this report
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia