JAKARTA (TheInsiderStories) – Good Morning! United States (US) Federal Reserve minutes arrive today. The minutes will cover two emergency meetings held by the committee on March 3 and 15, when it slashed rates to 0 to 0.25 percent as the impact of COVID-19 and announced a huge amount of quantitative easing, expanded repo operations and credit for commercial banks.
Usually the minutes give hints to the market on whether the Federal Open Market Committee is leaning hawkish of dovish. While, President Donald Trump administration asked Congress for an additional US$250 billion aids for small businesses reeling from the pandemic.
Treasury secretary, Steven Mnuchin said, he had consulted with congressional leaders on the second round of funding. If approved, the emergency funds would add to the $349 billion in forgivable loans to small businesses enacted on March 27 as part of a $2.3 trillion economic stimulus.
In Asia Pacific, the Australian parliament will endorse a fiscal stimulus plan worth A$130 billion (US$79.75 billion) for six million workers in an effort to contain the impact of the pandemic on the economy, said finance minister, Josh Frydenberg. Total fiscal and monetary stimulus has now exceeded A$320 billion or 16.4 percent of Australia’ gross domestic product.
While, S&P lowered its outlook on Australia’ coveted ‘AAA’ rating from stable to negative in anticipation of a “material” weakening in the government’ debt position as it splashes out a large fiscal stimulus package. The pandemic has dealt Australia a severe economic and fiscal shock, with S&P predicting the A$2 trillion economy would plunge into recession for the first time in nearly 30 years.
In the Asian sphere, Japanese Prime Minister Shinzo Abe finally gave a statement about the situation and emergency conditions to combat the coronavirus. Immediately he launched a stimulus package which according to Abe would be one of the largest in the world.
In the commodity market, oil prices took a tumble for the second-straight session as traders were kept in limbo on the possibility of production cuts. Brent crude crude oil was up 2.3 percent to $32.59 a barrel and West Texas Intermediate price rose 5.5 percent to $24.93 per barrel.
Thursday’ meeting between members of the Organization of Petroleum Exporting Countries and its allies is widely expected to be more successful than their gathering in early March. Saudi Arabia, Russia, and the oil cartel countries are likely to agree to cut the output, but that accord could be dependent on whether the United States would go along with cuts.
On Tuesday, the US Department of Energy said that the country’ output is already declining without government action. Yesterday, the US Energy Information Administration said crude production is expected to slump by 470,000 barrel oil per day (bpd) and demand is set to drop by about 1.3 million bpd in 2020.
Ahead of the meeting, the weekly US oil inventory numbers arrive today, with another big build expected. Earlier, in weekly report crude stockpiles, the American Petroleum Institute reported a rise of 11.9 million barrels.
In Indonesia, the Rupiah closed up 1.56 percent percent to 16,125 per US Dollar and the Jakarta Composite Index (JCI) was corrected 0.69 percent to 4,778.64 on Tuesday compared to prior day. According to analysts, a number of sentiments will occurs today’ trading, one of is the global oil price sentiment.
According to the analysts, the strengthening of the exchange rate will continue today supported by the dollar index, which is currently declining. Other sentiments that are judged to be still affecting the movements of the local currency are the development of the COVID-19 spread.
They estimates that the Rupiah will move in the range 16,000 to 16,500 over the American Dollar. While, the JCI between 4,675 – 4,929 compared to yesterday.
Stocks to be watch for today are PT Wijaya Karya Tbk (IDX: WIKA), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Japfa Comfeed Indonesia Tbk (IDX: JPFA), PT Bank Negara Indonesia Tbk (IDX:BBNI), PT Ace Hardware Tbk (IDX: ACES), PT Bank Tabungan Negara Tbk (IDX: BBTN), PT PP Tbk (IDX: PTPP), PT Sri Rejeki Isman Tbk (IDX: SRIL), PT Waskita Karya Tbk (IDX: WSKTO, PT Matahari Department Store Tbk (IDX: LPPF), PT Vale Indonesia Tbk (INCO), and PT Aneka Tambang Tbk (IDX: ANTM).
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia