Federal Open Meeting Committee - Photo by Federal Reserves

JAKARTA (The InsiderStories) – Good Morning! Today at 2.30 pm Eastern Time, United States (US) Federal Open Committee Meeting will announce its decision on the monetary policy. Markets are expecting an interest rate cut of 25 basis points (bps) at their 31st July meeting.

In December 2018, the Fed Funds Rate rose by 25 bps. It was the last hike. The Fed’ restrictive monetary policy in 2018 may have been justified by the relatively stronger growth forecasts.

Response to US’ Secretary of State Michael Pompeo comments, Chinese Foreign Ministry spokeswoman Hua Chunying hoped “the Chinese will do the right thing” in managing the protests in Hong Kong. He said, its clear Pompeo has put himself in the wrong position and still regards himself as the head of the Central Intelligence Agency (CIA).

Pompeo has delivered his concern on Hong Kong’ controversial extradition bill last week after met delegation of the country’ pro-democracy advocates led by Martin Lee Chu-ming in Washington, which he said threatened the city’ rule of law.

The comments show the US – China strains over Hong Kong are increasing, even as the two sides resume trade talks in Shanghai. Last week, Hua urged Washington to remove its “back hand” from the protests.

While, President Donald Trump ratcheted up pressure on China to quickly intervening reach a trade deal, warning that if he is re-Elected, the terms of an agreement would be much tougher than what is currently being Discussed.

The president said in a series of tweets on Tuesday morning that China Might get a better deal -if a Democrat like former Vice President Joe Biden wins the presidency in 2020. He tweet, “Then they could make a GREAT deal , like in the past 30 years, and continue to ripoff the USA, even bigger and better than ever before.”

In Europe, Prime Minister Boris Johnson promised to lead Britain out of the European Union on Oct. 31 “no matter what” as sterling tumbled and Ireland warned that the bloc would not be renegotiating the Thrice Defeated divorce deal. Yesterday, the British pound fell as investors bet Johnson’ Brexit brinkmanship could trigger a messy divorce that would sow chaos through the world economy and financial markets.

Oil prices climbed again throughout the week. This morning, West Texas Intermediate (WTI) oil prices for September 2019 shipments on the New York Mercantile Exchange stood at US$58.30 a barrel, or up 0.43 percent compared to the previous day.

The rise in oil prices was supported by optimism that the Fed will cut its benchmark rate for the first time in more decades. An increase expectations for world oil demand.

In Indonesia, a real estate developer, PT Propertindo Bhakti Agung will conduct an initial public offering (IPO). The company targeting to list it shares in August will utilize the proceeds to construct an apartment projects. The company has appointed PT MNC Securities to underwrite the IPO.

Yesterday, the government absorbed Rp21.45 trillion (US1.53 billion) funds from the auction of seven series of state debentures. The incoming bid Rp43.27 trillion exceeded the indicative target of Rp15 trillion.

On Tuesday, the Jakarta Composite Index climbed 1.24 percent to 6,377. Since the beginning of the year, the composite index’ return was recorded at 2.95 percent.

Some stocks to be watch for today PT Hotel Mandarine Regency Tbk (IDX: HOME), PT Trada Alam Mineral (IDX: TRAM), PT Smartfren Telecom Tbk (IDX: FREN), PT Sinergi Megah Internusa Tbk (IDX: NUSA), PT Sentul City Tbk (IDX: BKSL), PT Lippo Karawaci Tbk (IDX: LPKR), PT Rimo International Tbk (IDX: RIMO), and PT BumI Resources Tbk (IDX: BUMI)

At the same day, Indonesian Rupiah strengthened 0.04 percent compared to the previous day to 14,070 against the Greenback. This morning the local currency e exchange rate was priced at 14,010 when the spot market was opened.

US$1= Rp14,000

May you have a profitable day!

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