Final purchasing managers index (PMI) data will be keenly anticipated for the extent of the broader economic impact of the COVID-19 spread around the world after flash PMI data showed business activity in major economies slumped in March - Photo: Special

JAKARTA (TheInsiderStories) – Good Morning! Indonesia’ trade minister, Agus Suparmanto, said that he would temporarily stop the process of importing food and beverage products from China due to coronavirus. The limited especially on food and beverage products.

In Asia, China’ financial markets shook as they reopened after an extended Lunar New Year holiday. The main stock markets in Shanghai and Shenzhen fell some 8 percent, and the Renmimbi fell 1.2 percent against the US dollar to its lowest in eight weeks – once again breaching the psychologically important level of 7 to the dollar.

That happened despite a ban on short-selling by the stock market regulator and the injection of a net $22 billion into the domestic money market by the central bank. The People’s Bank of China effectively chose to roll over all of the extra seasonal liquidity that it pumped in ahead of the holidays, and add a little more for good measure.

There has been no major change in the narrative around the outbreak over the weekend but the death toll rose to 361 from 17,205 confirmed cases.

From the United States (US), its commerce department will release the latest figures on factory orders. December factory orders are expected to have risen 1.2 percent, reversing the drop of 0.7 percent in November.

For energy traders, the American Petroleum Institute (API) will issue its measure of weekly US oil inventories. The API snapshot serves as a guide for the official figures out Wednesday, but the two sets of numbers often diverge.

Last week API reported a drawdown of about 4.3 million barrels in crude stockpiles. Oil entered a bear market yesterday, down 20 percent from recent highs, WTI  and Brent fell below important technical levels.

Then, investors will also have politics to contend with tomorrow, with the results of the Iowa Caucuses come out tonight, the first hurdle for Democratic presidential nominee hopefuls. If candidates do well, that could weigh on equities. Both have platforms that Wall Street sees as unfriendly, to say the least.

In Europe, Sterling tumbled over 1 percent against the US dollar and nearly 0.8 percent against the Euro as the post-Brexit era began with some confrontational rhetoric out of London. British’ Prime Minister Boris Johnson said he would rather accept tariffs than the jurisdiction of the European Court of Justice.

The European Union (EU) members haven’t yet agreed on the mandate they will give the European Commission as regards negotiating a free-trade deal with the United Kingdom (UK). However, governments and commission representatives had been largely consistent in the three years since the referendum that they would press for an extensive role for the court in any free trade agreement.

Otherwise, purchasing managers indices (PMI) across Europe showed the manufacturing sector still in contraction at the start of 2020, albeit apparently past the worst of last year’ slowdown. The eurozone manufacturing PMI from IHS Markit rose to 47.9, a little higher than the 47.8 expected but still below the 50 line that separates growth from contraction. The UK’ PMI did make it back to 50 for the first time since May but the news was overshadowed by the post-Brexit tensions.

In the country, President Joko Widodo is scheduled to give guidance to participants of the 2020 National Disaster Management Coordination Meeting in the morning. Then a bilateral meeting with Singapore President Halimah Yacob and Mohamed Abdullah Alhabshee at the Bogor Presidential Palace. At the noon, the head of state will hold a limited meeting with his ministers regarding readiness to deal with the effects of the coronavirus.

PT Perusahaan Gas Negara Tbk (IDX: PGAS) targets to lowering the price of industrial gas to US$6 per MMBtu starting April 1, 2020 from the current price at $9 a MMBtu. The decision have been taken in accordance with the implementation of Presidential Regulation Number 40 of 2016 concerning Determination of Natural Gas Prices for Certain Industries.

On Monday, Indonesian Rupiah and the Jakarta Composite Index (JCI) dropped significantly amid the coronavirus outbreak. The local currency dropped 0.66 percent to 13,740 per US Dollar and the composite index down 0.94 percent to 5,884.17 compared to last week.

Today, the Rupiah its expecting move in the range 13,600 – 13,700 and the JCI between 5,789 – 6,024. The reason, said some analysts, market turbulences around the globe still affected the market.

Stocks to be watch for today are PGAS, PT Lippo Karawaci Tbk (IDX: LPKR), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Charoen Pokphand Indonesia Tbk (IDX: CPIN), PT Telekomunikasi Indonesia Tbk (IDX: TLKM), PT Adaro Indonesia Tbk (IDX: ADRO), PT Medco Energy International Tbk (IDX: MEDC), PT Unilever Indonesia Tbk (IDX: UNVR), PT Bank Central Asia Tbk (IDX: BBCA), PT Indocement Tunggal Perkasa Tbk (IDX: INTP), and PT Elang Mahkota Teknologi Tbk (IDX: EMTK).

Investing 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