United States - China Relationships heating again - Photo by EPA

JAKARTA (TheInsiderStories) – Good Morning! China has suspended United States (US) warship visits and sanctioned several American non-government organizations after ratify a bill backing pro-democracy protesters in Hong Kong. The country urged Washington stop interfering on internal affairs in the mainland of China.

It said, Beijing will take further steps if necessary to uphold Hong Kong’ stability and prosperity and China’ sovereignty. Last week, US President Donald Trump signed the Hong Kong Human Rights and Democracy Act.

Still from America, Trump is reinstating tariffs on steel and aluminum from Argentina and Brazil. In March 2018, Washington authorized a 25 percent tariff on steel imports and a 10 percent duty on aluminum. In August of last year, he gave South Korea, Brazil and Argentina targeted relief from quotas imposed on inbound steel shipments to protect US producers. The move allowed buyers to request exemptions for imports from key suppliers.

Once more, Trump called the Federal Reserve to loosen monetary policy linking his trade agenda with his criticism and to suppressed the currencies. The president has long grumbled about the Dollar’ strength and urged the central bank to abandon decades of precedent and act to weaken the Greenback.

From commodity market, crude oil price is still heating up, as news that Organization Petroleum Exporting Countries (OPEC) and their allies will cut steeper production next year. Yesterday, price of West Texas Intermediate crude rose 2.25 percent to US$56.41 a barrel and Brent crude rose 2.02 percent to $61.71 per barrel.

In the country, President Joko Widodo will have a bilateral meeting with Japan Bank for International Cooperation (JBIC) to discuss the investment opportunity in Indonesia. Both parties in talk to create sovereign wealth fund for infrastructure projects in the country.

To support intermediation of national banks, Bank Indonesia (BI) governing technical matters regarding the mechanism for the implementation of Macroprudential Intermediation Ratio and Macroprudential Liquidity Buffer through the BI Regulation Number 21/22/PADG/2019 for commercial banks, sharia commercial banks, and sharia business units on Nov. 28.

This new rule is issued as implementing provisions of BI Regulation Number 21/12/PBI/ 2019 concerning Amendments to BI Regulation Number 20/4/PBI/ 2018. In addition, this week, the central bank to announce the foreign exchange reserves and consumer confidence index (CCI). In October, the reserves position at US$126.7 billion and the CCI declined to 118.4 from 121.8 in the previous month. This was the weakest reading since February 2017.

The data also showed a weakening in the index of current economic conditions, which fell 2.7 points to 104.8. While, the index of expectations of economic conditions dropped 4.2 points to 136.2.

On Monday, Indonesian Rupiah closed down 0.12 percent to 14,125 over the US Dollar. While, the Jakarta Composite Index (JCI) jumped 1.97 percent at 6,130.05 compared to prior day.

Citing data from Statistic Indonesia, November’ inflation lower than market expectations stood at 0.14 percent and annual inflation was at the level of 3 percent. According to the economist the data indicated that domestic consumption was under pressure.

Beside domestic factors, the investors still wary of seeing the development of trade negotiations between the US and China.

Based on various information, the observes sees the local currency move between 14,010 – 14,150 compared to American Dollar and the JCI in the range of 5,987 to 6,210.

Stocks to be watch for today are PT Bank Negara Indonesia Tbk (IDX: BBNI), PT MNC Vision Network Tbk (IDX: IPTV), PT Telkom Indonesia Tbk (IDX: TLKM), PT Perusahaan Gas Negara Tbk (IDX: PGAS), PT Indika Energy Tbk (IDX: INDY), PT PP Tbk (IDX: PTPP), PT Adhi Karya Tbk (IDX: ADHI), PT Wijaya Karya Tbk (IDX: WIKA), and PT Surya Citra Media Tbk (IDX: SCMA).

May you have a profitable day!

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