European Central Bank signaled further easing by the end of the year - Photo by ECB Office

JAKARTA (TheInsiderStories) – Good Morning! On Thursday, the new president of European Central Bank (ECB) Christine Lagarde will announces her first monetary policy. At the same day Federal Reserves also to release the policymakers decision on the Fed Fund Rate (FFR).

Last month, the ECB left its policy mix unchanged. The central bank cut its interest rates further below zero and restart a Euro 2.6 trillion ($2.89 trillion) bond-buying program starting Nov. 1. While, the Fed Federal lowered the FFR to 1-1/2 to 1-3/4 percent.

Still from Europe, a general election is set to take place across United Kingdom today. The Conservative has lead over the contenders over the last few days but in small percentage.

This year’s election has come about due to prime minister Boris Johnson’s failure to get the Brexit deal through parliament. Whoever is returned as the premier after the Dec. 12 will have to get cracking with their Brexit strategy.

Michel Barnier believed the Brexit trade negotiations cannot be finished in the time frame claimed by Johnson. In a leaked recording obtained by The Independent, he tells that the UK’s 11-month timetable to wrap up trade talks by 2021 is “unrealistic” and suggests negotiations will drag on until long after the end of next year.

In the country, this morning, President Joko Widodo will launch the first export of Isuzu Traga in Karawang, West Java. The vehicle produces by PT Isuzu Astra Motor Indonesia, unit of conglomeration firm, PT Astra International Tbk (IDX: ASII).

On the palm oil issues, minister of trade Agus Suparmanto will negotiate with the European Union related to the imposition of Anti-Subsidy Import Duty for biodiesel products from Indonesia. The organization accused the product being subsidized by the country.

He also assured, the government have no plan to file a lawsuit with the World Trade Organization (WTO). The negotiation path is still a priority, said the minister.

While, the energy and mineral resources ministry plans to implemented the coal domestic obligation market (DMO) policy mechanism option for 2020. Although there is a new scheme the ministry assure the coal selling price for DMO still at US$70 per ton.

The ministry added, the minimum percentage of DMO for next year is in the range of 20 – 25 percent of total production from last two years. In 2018 and 2019, companies must provide 25 percent of their total production for DMO needs. The government also changed the sanction mechanism for companies that failed to fulfill the obligations.

From the politic side, chairman of Demokrat party, Susilo Bambang Yudhoyono, confirms his party become the opposition. But, he ensured, he committed to support Joko Widodo – Ma’ruf Amin administration as long inline with the party’ goal.

Yesterday, Indonesian Rupiah closed down 0.13 percent to 14,038 against the US Dolar AS and the Jakarta Composite Index (JCI) dropped 0.06 percent at 6,180.10. The analyst said, the exchange and stock index movement was influenced by commodity prices, such as crude oil, nickel and tin.

Other sentiment come from the imposing of new tariffs for Chinese products by the United States (US) starting Dec. 15. Beside, the correction also influenced on the market anticipation ahead of the Fed’ policymakers decision.

On Thursday’ the observer viewed Rupiah will move between 13,990 t0 14,100 and the JCI tend to weaken with support at 6,160 and resistance at 6,200.

The stock to be watch for today are PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Telkom Indonesia Tbk (IDX: TLKM), PT Jasa Marga Tbk (IDX: JSMR), PT Astra International Tbk (IDX: ASII), PT HM Sampoerna Tbk (IDX: HMSP), PT Unilever Indonesia Tbk (IDX: UNVR), PT Gudang Garam Tbk (IDX: GGRM), and PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP).

May you have a profitable day!

Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia