US - China Trade War - Photo by WorldFinance

JAKARTA (TheInsiderStories) – Good Morning! Unite States (US) President Donald Trum sent a signal will sign the “phase one” pact of trade deal. He said, “Getting VERY close to a BIG DEAL with China. They want it, and so do we!”

As reported, the completion of a phase one deal had been expected in November, but an official at the White House said it could slide into the new year. The trade deal is expected to include “a significant increase in Chinese agricultural purchases” in exchange for the US delaying a new round of tariffs scheduled to take effect Dec. 15 and as much as a 50 percent reduction in existing levies

Chinese officials expect Trump to delay tariff increases that will take effect on Sunday. But, White House trade adviser Peter Navaro said that there was no evidence that this rate would not apply.

From United Kingdom (UK), Boris Johnson’ Conservative Party is on course to win a huge majority, with early projections saying it will take 368 seats. Yesterday, peoples of Britain has voted for the new premier to lead the country.

The British pound is on track for one of its biggest one-day moves on record after exit polls predict Johnson will win the UK general election comfortably, paving the way for Britain’ departure from the European Union. Both parties has agreed to postponed the decision on Brexit deal on January 2020.

From Asia, Japan‘ private machinery orders, a leading indicator of capital expenditure, fell 6.0 percent in October, marking the fourth consecutive month of decline. The large contraction reflects a 5.4 percent fall in orders from non-manufacturers and the third straight month of decline in orders from manufacturers, down 1.5 percent from prior month.

Sluggish external demand and production continued to weigh on orders from manufacturing industries, while orders from electrical machinery manufacturers continued to increase and orders from auto and auto parts manufacturers signaled a rebound. The overall contraction of orders from the manufacturing sector largely reflected drops in orders from general-purpose machinery, information and communication electronics equipment, fabricated metal products, and shipbuilding.

Yesterday, major of stock indexes surged to new intraday highs, and the S&P 500 and Nasdaq Composite indices closed at new records on reports that the US and China have “an agreement in principle” on a phase one trade deal. The S&P 500 closed up 0.9 percent to 3,168.57, breaking the old closing high of 3,153.63, set on Nov. 27.

The Nasdaq finished up 0.73 percent to 8,717.32 and the Dow Jones industrials were up 0.79 percent to 28,132.05. The Asian foreign exchange market is still waiting for the continuation of China’ planned import tariff increase of US$156 billion which will take effect on December 15.

In the regiona, only the Rupiah and the Hong Kong Dollar this morning weakened against the Greenback. The majority of Asian currencies strengthened, with the highest gains in Won, Ringgit, Taiwan dollar and Pesos.

In the country, Indonesian Rupiah closed higher 0.04 percent to 14,033 a US Dollar and he Jakarta Composite Index (JCI) continued to decline for three consecutive days, corrected 0.66 percent to 6,139,397. DBS still sees the potential for strengthening the rupiah amid stable monetary policy.

Analysts rated the domestic exchange rate and the stock index will not move much until the end of the year. The Federal Reserves decision to maintain interest rates will still affect the movement of the Rupiah. In addition, investors are still wary of the development of Chinese and US trade wars.

Looking on various developement, the analysts predicted the Rupiah will move between 14,000 – 14,080 over the American Dollar and the JCI in the range of 6,086 – 6,211 compared to yesterday.

Stock to be watch PT Astra International Tbk (IDX: ASII), PT Bank Permata Tbk (IDX: BNLI), PT Charoen Pokphand Tbk (IDX: CPIN), PT Indah Kiat Pulp and Paper Tbk (IDX: INKP), PT Indofood SUkses Makmur Tbk (IDX: INDF), PT Vale Indonesia Tbk (IDX: INCO), PT Sri Rejeki Isman Tbk (IDX: SRIL),PT Matahari Department Store Tbk (IDX: LPPF), PT Telekomunikasi Indonesia Tbk (IDX: TLKM), and PT Unilever Indonesia Tbk (IDX: UNVR).

May you have a profitable day!

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