JAKARTA (TheInsiderStories) – Good Morning! Indonesia, United States (US), Japan, Taiwan, and Brazil left their benchmark rates and other tools unchanged in their latest meetings. Bank of England is also expected to stay on hold when it makes its post-meeting statement today.
From US, commerce department reported, the initial jobless claims reached 860,000 for the week ended Sept. 12 and an unexpected 76,000 decline in housing starts as activity was hurt by Hurricane Laura and Tropical Storm Marco. While, President Donald Trump leaned on the Republican Party to approve more fiscal stimulus.
He have proposed a compromise stimulus package worth around $1.1 trillion while the Senate only approved $650 billion of extra spending to support the economy through the fall. In addition, the US dollar had risen and risk assets had slipped after the Federal Reserves (Fed) failed to give any hint of when it might increase its monthly bond purchases to give further support to the economy.
The chairman, Jerome Powell, had again highlighted the need for fiscal policy to fill a gap in incomes created by government measures to contain the pandemic. In the commodity market, crude oil prices steady above US$40 a barrel as Organization Petroleum Exporter Countries and allies ministers meet and a solid drop in US inventories.
It signs of more production discipline from key exporters in the bloc. This morning, West Texas Index futures were up 0.1 percent at $40.12 a barrel and Brent futures were up 0.1 percent to $42.27 a barrel.
Yesterday, Indonesian Rupiah strengthened 0.07 percent to 14,833 per US Dollar and the Jakarta Composite Index (JCI) fell 0.4 percent to the level of 5,038.40 compared to the prior day. The analysts believed that Bank Indonesia’ policy to maintain interest rates at 4 percent supports the strengthening of both instruments.
According to them, the unchanged interest rates have stabilized the spread of government securities and US treasury yields. However, they observe that current investors are still interpreting the impact of the Fed‘ statement which remains dovish.
In the short term, the central bank’ accommodative stance and will continue to inject liquidity into the market will give positive sentiment to the financial market. At the same time, The Fed, which projects that the US economy will continue to weaken for a long time, will eventually bring negative sentiment to global financial markets.
They projected that the US dollar index will move lower due to stagnant economic growth. Based on these sentiments, observers project that today the Rupiah will still have the opportunity to strengthen in the range of 14,750 to 14,875 per US dollar and the JCI in the range 5,000 – 5,200.
Stocks that can be watched today are PT Astra International Tbk (IDX: ASII), PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP) , PT HM Sampoerna Tbk (IDX: HMSP), PT Bank Mandiri Tbk (IDX: BMRI), PT Medco Energi Internasional Tbk (IDX: MEDC), PT London Sumatra Plantation (IDX: LSIP), and PT Bank Negara Indonesia Tbk (IDX: BBNI).
May you have a profitable Day!
Written by Linda Silaen, Please Read Our News to Get More information about Indonesia