Chairman of Federal Reserve, Jerome Powell said, there is a less room to cut the rates in this year and must use another tools to guard United States (US) economy - Photo by Federal Reserves Office

JAKARTA (TheInsiderStories) – Good Morning! Chairman of Federal Reserve, Jerome Powell said, there is a less room to cut the rates in this year and must use another tools to guard United States (US) economy. He testified, the central bank would stimulate the economy by aggressively buying large amounts of government bonds when the next downturn hits the country.

The tools include forward guidance and its mean the policymakers will keep rates low, large-scale asset purchases of longer-term securities to drive longer rates down and support the economy. The Fed, he adds, will use those tools aggressively to fight the next recession.

In Asia, the Chinese Renmimbi slipped against the US Dollar, after Hubei province reported a sharp jump in the number of new cases in a jolt to markets and sparking a flight for safe haven assets. Stocks in Asia also faltered as the latest update on the spread of the virus provided a grim reminder to investors that the epidemic remains a potent threat to the global economic outlook.

On Thursday, Hubei reported 14,840 new cases with the number of deaths in the province rising a sharp 242 to 1,310. While, the World Health Organization has likened the epidemic’ threat to terrorism, underscoring the anxiety in financial markets about its impact across businesses and trade worldwide.

Its reported, Chinese policymakers have implemented a raft of measures to support the economy as fears grow the coronavirus outbreak could have a damaging impact on growth in the Asian giant and globally.

In the country, Indonesian Hotels and Restaurants Association estimates there has been a decline in tourist visits to tourist sites by 30 percent since the corona outbreak spread. There was also a potential of 2.1 million flight seats lost because the virus outbreak.

On Wednesday, Indonesia was elected as chair of the International Fund for Agricultural Development (IFAD) steering council for the period 2020 – 2022. IFAD currently has 177 member countries as the only international financial institution that has a special mandate to encourage investment in rural areas and support the development of smallholder capacity.

Today, US’ labor department will issue the January’ consumer price index (CPI). Last month, the CPI is expected to have risen 0.2 percent, the same as it rose in December and the core CPI is also forecast to have risen at the same lever for January. At the same time, weekly initial jobless claims figures will also be released.

In the country, the coordinating minister for the economy, Airlangga Hartarto, will lead the High Level Meeting of the Central Inflation Control Team at his office. Then, the government and parliament will discuss a draft bill on Amendments to Law Number 4 of 2009 concerning Mineral and Coal Mining.

Yesterday, Indonesian Rupiah strengthened 0.01 percent to 13,674 and the middle rate of Bank Indonesia also up 0.20 percent to 13,659 a US Dollar. The Jakarta Composite Index (JCI) dropped 0,69 percent to 5.913,08 compared to prior day.

Some analysts considered the JCI to decline amid the strengthening of the majority of regional exchanges, including the Shanghai Index which rose 0.87 percent. The market responded positively to the efforts of the Chinese Government in dealing with the coronavirus outbreak.

They said, the positive sentiment could also influence the movement of the two major instruments today. The observers sees the local currency will moves between 13,680 to 13,700 against the Greenback and the stock index in the range of 5,950 – 5,975

The stocks to be considered for today are PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Bank Mandiri Tbk (IDX: BMRI), PT Telkom Indonesia Tbk (ID: TLKM), PT Perusahaan Gas Negara Tbk (IDX: PGAS), PT Pakuwon Jati Tbk (IDX: PWON), PT Adaro Energy Tbk (IDX: ADRO), PT HM Sampoerna Tbk (IDX: HMSP), PT Indofood Sukses Makmur Tbk (IDX: INDF), PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP), PT Semen Indonesia Tbk (IDX: SMGR), PT Unilever Indonesia Tbk (IDX: UNVR), PT Waskita Karya Tbk (IDX: WSKT), and PT United Tractor Tbk (IDX: UNTR).

May you have a profitable day!

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