United States Federal Open Meeting Committe - Photo by the Central Bank Office

JAKARTA (TheInsiderStories) – Good Morning! United States (US) Federal Reserve is widely expected to lift the Fed Fund Rate (FFR) target in the range zero to 0.25 percent. The reasoned, US still needs economic stimulus, especially now that the monetary policy space is not large.

This investors hopes more of flush fiscal stimulus then cut the benchmark rate. So far, US is still the country with the highest number of coronavirus infections.

In the commodity market, oil prices climbed, trimming some of this week’ steep losses after US stockpiles rose less than expected. On Tuesday, West Texas Intermediate crude futures jumped to a high of $13.85 and were up 8.8 percent, paring a 27 percent plunge over the first two days of this week.

While, Brent crude futures rose 1.8 percent to $20.82, adding to a 2.3 percent gain. American Petroleum Institute reported, US crude inventories rose by 10 million barrels to 510 million barrels in the week to April 24.

After the declining crude oil demand, crude palm oil demand was also pressured due to the COVID-19 pandemic. The Malaysian Palm Oil Board reported that the decline in recorded demand for shipments from the country to India dropped significantly by 97 percent compared to the same period last year. The volume of 10,806 tons realized in March also showed the lowest level since 2,000.

In Indonesia, President Joko Widodo will hold a limited meeting to discuss the impact of COVID-19 on micro, small and medium enterprises. Then, two senior ministers in the fields of economics, politics, law and human rights have an agenda related to large-scale social distancing.

Until this morning, the number of cases of COVID-19 disease reached a total of 3.12 million people worldwide. One third of this figure was contributed by the US. In Indonesia, the number of fatalities was 773, positive cases 9,511, and recovered 1,254 people.

At the same day, House’ commission VI hearing with state-owned lender, PT Bank Rakyat Indonesia Tbk IDX: BBRI), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Bank Mandiri Tbk (IDX: BMRI), and PT Bank Tabungan Negara Tbk (IDX: BBTN ). Then with PT Garuda Indonesia Tbk (DX: GIAA), PTASDP Indonesia Ferry, PT Pelni, and Managing Director of PT Kereta Api Indonesia.

On Tuesday, Indonesian Rupiah depreciated 0.39 percent to a level of 15,445 a US Dollar. And the Jakarta Composite Index (JCI) closed 0.36 percent higher at 4,529.55 on Tuesday.

For today, analysts assess, the decision of the Fed will be one of the main sentiments that colored the movements of the two major instruments. The market also welcomed the planned relaxation of social distancing in the US and a number of countries in Europe, including Germany and Italy which were the countries with the most cases.

For these reasons, analysts predict the Rupiah will move in the range and JCI between 4,443 – 4,747. Shares that can be watched today are PT Barito Pacific Timber Tbk (IDX: BRPT), PT Astra Agro Lestari Tbk (IDX: AALI), BBRI, BBNI, PT Bank CIMB Niaga Tbk (IDX: BNGA), and PT Indocement Tunggal Perkasa Tbk (IDX : INTP).

Then, PT Semen Indonesia Tbk (IDX: SMGR), PT United Tractors Tbk (IDX: UNTR), PT Bumi Serpong Damai Tbk (IDX: BSDE), PT HM Sampoerna Tbk (IDX: HMSP), PT Kalbe Farma Tbk ( IDX: KBLF), BMRI, BBTN, and PT Bank Central Asia Tbk (IDX: BBCA).

May you have a profitable Day!

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