United States (US) treasury secretary Steven Mnuchin and Trade Representative Robert Lighthizer seated one table again with Chinese Vice Premier Liu He on Thursday (10/10) - Photo by Reuters

JAKARTA (TheInsiderStories) – Good Morning! United States (US) treasury secretary Steven Mnuchin and trade representative Robert Lighthizer seated one table again with Chinese vice premier Liu He on Thursday (10/10). They met to avoid an escalation of tit-for-tat tariffs that have roiled financial markets and stoked fears of a global recession.

The official said, Beijing still open to reaching a partial trade deal with the Washington. He adds, China would accept a limited deal, as long as no more tariffs are imposed by President Donald Trump, including duties set to take effect this month and in December.

On the impeachment issues, Trump said he would participate in the House probe if the investigation was authorized by a vote and if Democrats commit to following rules he views as fair. As known, Democrats are investigating his effort to have Ukraine probe former vice president Joe Biden, who is seeking the party’ presidential nomination and other election-related matters.

From Europe, the European Union (EU) imposed tariffs as high as 66.4 percent on steel road wheels from China. The duties punish Chinese exporters of steel wheels for vehicles including cars, tractors and trailers for allegedly dumping. The European market for such wheels is an estimated worth of EUR800 million.

The levies, due to take effect today, will last for six months and may be prolonged for five years. While, EU’ finance ministers agreed to remove the United Arab Emirates, Switzerland and Mauritius from the lists of countries deemed to be acting as tax havens.

EU set up a blacklist or a gray list of tax havens in December 2017. The blacklisted states face reputational damage and stricter controls on transactions with the organization.

Saudi Arabia will agree to invest about US$2 billion in Russia when President Vladimir Putin makes his first visit to the desert kingdom  on Oct. 14. The Russian leader also will visit the United Arab Emirates on Oct. 15.

The two sides will announce more than 10 Saudi investment projects in Russia including in the petrochemical and agricultural sectors. These are part of a promised $10 billion of Saudi commitments, of which more than $2.5 billion have already been disbursed.

The Organization of the Petroleum Exporting Countries (OPEC) forecast world oil demand to grow by 980,000 barrels a day in 2019 but left its outlook for 2020 demand growth unchanged at 1.08 million barrels a day. OPEC sees total world oil demand averaging 99.8 million barrels a day in 2018 and 100.88 million barrels a day in 2020.

The organization also revised down its forecast for non-OPEC oil supply growth by 160,000 barrels day to 1.82 million barrels a day, mainly reflecting downward revisions for the US, Norway and England. For 2020, non-OPEC oil supply growth was revised down by 5,000 barrels a day to 2.2 million barrels a day in annual basis due to downward revisions for Kazakhstan and Russia.

In Asia, Japan‘ private machinery orders, excluding volatiles – a leading indicator of capital expenditure – fell 2.4 percent month on month (MoM) in August, following a 6.6 percent drop in the previous month. The decline reflected an 8.0 percent drop in orders from the non-manufacturing sector, excluding volatiles, following a 15.6 percent drop in the previous month, in addition to a 1.0 percent drop in orders from the manufacturing sector.

Orders from shipbuilding, non-ferrous metals, automobiles and accessories and some other industries declined in August, which led to the weakness in orders from manufacturers, offsetting continued increases in orders of electrical machinery as well as information and communication electronics equipment. The continued decline in orders from non-manufacturers was due largely to lower orders from construction, telecommunications information and services, and other industries.

From Indonesia, President Joko Widodo has hinted that the Democratic Party may join his cabinet following a meeting with the chairman and former president Susilo Bambang Yudhoyono at the State Palace on Thursday. He and Ma’ruf Amin are slated to be inaugurated as president and vice president on Oct. 20.

Yesterday, Indonesian Rupiah closed up 0.16 percent to 14,154 against the US Dollar. While the Jakarta Composite Index (JCI) dropped 0.09 percent to 6,023.64 on Thursday. Since the beginning of the year the stock index was lowered 2.76 percent.

Analysts rated, the success of the Renmimbi strengthened against the US dollar became a positive sentiment for Asian currencies, including Rupiah. For today, the movement of local currency and JCI is very dependent on the outcome of a trade meeting between the US and China in Washington DC.

In addition, the Rupiah movements will also be influenced by US inflation figures for the September period. Therefore, the observers analyzed, the local exchange rate will move in the range of 14,125 – 14,200 over the Greenback and the JCI between 5,988.87 to 6,138.25.

Shares that are still technically quite attractive to watch for today are PT Adhi Karya Tbk (IDX: ADHI), PT Astra International Tbk (IDX: ASII), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Wijaya Karya Tbk (IDX: WIKA), PT Waskita Karya Tbk (IDX: WSKT), and PT Semen Indonesia Tbk (IDX: SMGR).

Then, PT Gudang Garam Tbk (IDX:GGRM), PT HM Sampoerna Tbk (IDX: HMSP), PT Bank Mandiri Tbk (IDX: BMRI), PT Adaro Energy Tbk (IDX: ADRO), PT Vale Indonesia Tbk (IDX: INCO), and PT Bukit Asam Tbk (IDX: PTBA).

May you have a profitable day!

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