United States - China relations have plummeted to their lowest point in decades - Photo by WorldFinance

JAKARTA (TheInsiderStories) – Good Morning! United States (US) – China relations have plummeted to their lowest point in decades. Secretary of state, Mike Pompeo, said his country and its allies must use “more creative and decisive ways” to pressure the Chinese Communist Party to change its behavior and call it “the mission of our time”.

While, US Congress is still discussing on a stimulus agreement proposed by President Donald Trump’ administration. The discussion that began earlier this week has not yet produced results.

Moreover, the latest US Department of Labor data shows that the unemployment rate is still high with jobless claims rising last week. This is the first increase in unemployment benefit claims in almost four months.

In Asia, South Korean recession sentiment is expected to have an impact on all Asian currencies, including Rupiah. In addition, Bank Indonesia’ concern about the economic growth contraction and recession in the second and third quarters is expected to exacerbate major instruments.

While, sentiment related to vaccine demand for Indonesia from China and Britain has encourage optimism about recovery and economic certainty. In contrast, some observers assessed that the recession sentiment and the development of positive cases of the COVID-19 become the sentiment to drive the market on Friday.

In Indonesia, finance ministry officials hold press statements related to the current condition of the Indonesian economy. While senior minister, Luhut B. Panjaitan, will chair a meeting related to business permits for shrimp farming and investment in the oil and gas import sector.

Yesterday, the Rupiah strengthened 0.48 percent to 14,580 per US Dollar and the Jakarta Composite Index (JCI) closed up 0.68 percent to a level of 5,145.01 from the previous day. Analysts say that the US Dollar is increasingly not ogled by investors as a safe investment asset as the number of positive cases of COVID-19 in the US continues to grow.

The number of new positive cases in the world as of July 22 was 280,157 and a total of 15.6 million were recorded. The addition of the highest positive cases is still led by the US, which added 71,967 new cases and raises market concerns in several states extending restrictions on business activities so that the economic recovery process will take longer than expected.

With these various indicators the JCI is estimated to move between 5,030 – 5,200 and the Rupiah in the range 14,520 – 14,620 against the Greenback. The shares that can be monitored today are PT Japfa Comfeed Indonesia Tbk (IDX: JPFA), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Vale Indonesia (IDX: INCO), and PT Astra Agro Lestari Tbk (IDX: AALI).

Then, PT Kalbe Farma Tbk (IDX: KLBF), PT Bank Central Asia Tbk (IDX: BBCA), PT Kimia Farma Tbk (IDX: KAEF), PT Unilever Indonesia Tbk (IDX: UNVR), PT PP Tbk (IDX: PTPP), PT United Tractors Tbk (IDX: UNTR), PT Indofood Sukses Makmur Tbk (IDX: INDF), and PT Telkom Indonesia Tbk (IDX: TLKM).

May you have a profitable day!

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