President Donald Trump that the first phase of a trade deal between US and China was close - Photo by the White House

JAKARTA (TheInsiderStories) – Good Morning! Comment of United States’ President Donald Trump that the first phase of a trade deal with China was close lifted Wall Street’ three major indexes to the previous days’ records. S&P 500 was up 0.22 percent, the Dow Jones industrials added 0.20 percent and the Nasdaq Composite was up 0.18 percent.

White House adviser, Kellyanne Conway, said, on Tuesday, US trade representative, Robert Lighthizer and treasury secretary, Steven Mnuchin, spoke with Chinese Vice Premier Liu spoke by telephone and agreed to keep working on the remaining issues. While, China’ commerce ministry stated, the world’ two largest economies try to hammer out a “phase one” deal.

Today, US, Canadian and Mexican representatives are set to meet in Washington to discuss the trade deal to replace the North American Free Trade Agreement, Politico reported on Tuesday. The meeting will includes Lighthizer, Canadian deputy prime minister Chrystia Freeland and Mexico’ deputy foreign minister for North America Jesus Seade,

From Europe, The European Union’ (EU) Brexit negotiator, Michel Barnier, has told the parliament, he will make new trade deal with the organization a priority after Brexit, the Financial Times reported. He said the 11 months from Britain’ planned EU exit on Jan. 31 until the end of its transition period would normally not be enough to negotiate a trade agreement.

But he added that Brussels will strive to have a deal in place for the end of 2020. Barnier also said issues beyond the scope of the trade pact, such as concluding an agreement on road freight and aircraft takeoff and landing rights, could take longer, with the option for Brussels to take contingency measures to prevent economic disruption if talks were to continue past the end of 2020.

On Korea Peninsula, Indonesian President Joko widodo said at the ASEAN – Republic of Korea (RoK) Summit, peace and prosperity are two things that are very important for Southeast Asia and East Asia. For that, he encouraged the cooperation between the two economic powers caused could be carried out if stability and peace were present in the region.

Therefore, he urged also stressed that Indonesia supports denuclearization efforts on the Korean Peninsula. At the meeting, he also welcomed the ASEAN – Korea partnership in the next 30 years for the prosperity of the people together. He proposed the priority of the cooperation to focus on trade, investment, research education and technology, creative economy, and renewable energy development.

From Indonesia, Fitch Ratings rated the prospect of Indonesia’ economic pace is likely to be stable despite the sluggish global economic conditions due to geopolitical uncertainties such as the US – China trade wars and Brexit. Its considered that Indonesia was unexpectedly becoming one of the countries with fairly stable economic growth compared to other countries.

The agency said, this is supported by adequate financial buffering and the still open policy space to sustain domestic demand, which is shown from the ratio of total debt to GDP still below the threshold.

Several agenda to watch on Tuesday are the shareholders meeting of state-owned lender, PT Bank Tabungan Negara Tbk (IDX: BBTN) with agenda to change the management. Previously, state own minister, Erick Thohir, said has appointed former finance director of PT Pertamina, CEO PT Garuda Indonesia Tbk (IDX: GIAA), and finance director of PT Bank Mandiri Tbk (IDX: BMRI), Pahala Mansyuri to become the new CEO of the bank.

Other shareholders meeting hold by PT Bank Rakyat Indonesia Agroniaga Tbk (IDX: AGRO), PT Industri Jamu and Pharmacy SidoMuncul Tbk (IDX: SIDO), and PT Astrindo Nusantara Infrastructure Tbk (IDX: BIPI). 

Then, parliament hearing with PT Bank Rakyat Indonesia Tbk (IDX: BBRI), the minister of energy and mineral resources (EMR) Arifin Tasrif along with Pertamina, PT Perusahaan Listrik Negara Tbk (IDX: PLN), and PT Perusahaan Gas Negara Tbk (IDX: PGAS). Other agenda are seminar on the prospects of coal export with the director general at EMR ministry Bambang Gatot Ariyono scheduled to attend the seminar.

On Tuesday, Indonesian Rupiah weakened 0.01 percent to 14,088 but Bank Indonesia’ middle rate edged up 0.07 percent to 14,081 against the US dollar. While, the Jakarta Composite Index (JCI) dropped 0.73 percent to 6,026.19 from previous day.

Some analysts rated, thin movements occur Asian currencies on Tuesday. A number of currencies weakened include the Japanese Yen, Singapore Dollar, Renmimbi, Hong Kong Dollar and Thailand Baht.

Beside, some Asian currencies strengthened such as Taiwan Dollar, Philippines Pesos, South Korean Won, and Malaysuan Ringgit. The optimism on the US – China trade agreement become the major triggered on the market, said the analysts.

They said that the Rupiah was under pressure from comments by Federal Reserves chairman, Jerome Powell, who signaled that the central bank might maintain its benchmark interest rate and not cut again. As is known, the Bank has cut its benchmark interest rate by a quarter point to the targeted range of 1.5  – 1.75 percent at the October meeting.

With all various information, they estimates, the local curency will move in the range of 14,030  to 14,160 over the Greenback in the short term and the stock between 5,988  – 6,080.

The observers recommended AGRO, SIDO, BIPI, PT Bank Tabungan Negara Tbk (IDX: BBTN), PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Negara Indonesia Tbk (IDX: BBNI), BMRI, PT AKR Corporindo Tbk (IDX: AKRA), PT Summarecon Agung Tbk (IDX: SMRA), and PT Solusi Bangun Indonesia Tbk (IDX: SMCB).

May you have a profitable day!

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