JAKARTA (TheInsiderStories) – Good Morning! The United States (US) and China will meet again to discuss the continuation of Phase 1 trade deal. As reported, both has signed an agreement in January 2020, as a partial ceasefire in the prolonged trade war.
The agreement obliges China to import an additional US$200 billion worth of American products over two years, from cars and machinery to oil and agricultural products. But the COVID-19 has suppressed the first phase of the deal.
Still from US, investors now are waiting for the statement of the chairman of Federal Reserve, Jerome Powell, at the Jackson Hole symposium on Thursday. He is expected to provide further guidance on the direction of US monetary policy as well as focus on the 2 percent inflation target during his speech.
While, the World Health Organization (WHO) stated that the pandemic is still widespread, but the increase in cases and deaths has slowed globally, except for the Southeast Asia and eastern Mediterranean regions. The agency reported America remains the hardest-hit region, accounting for half of the newly reported cases and 62 percent of the 39,240 deaths worldwide in the past week.
More than 1.7 million new cases of COVID-19 and 39,000 new deaths were reported to WHO for the week ending August 23, a four percent decrease in the number of cases and a 12 percent decrease in the number of deaths compared to the previous week.
Southeast Asia, the second most-affected region, reported spikes accounting for 28 percent of new cases and 15 percent of deaths, he said. India continues to report most cases, but the virus is also spreading rapidly in Nepal.
Form the commodity market, crude oil prices rose to their highest level in five months on Wednesday morning. US producers had shut down most of their offshore production in the Gulf of Mexico in anticipation of Hurricane Laura.
Brent futures was up 1.6 percent to US$45.86 a barrel and West Texas Intermediate jumped 1.7 percent to $43.35 a barrel. The levels were the highest for both benchmarks since March 5, a day before Saudi Arabia and Russia failed to agree on new plans to cut production and about a week before the World Health Organization declared a pandemic.
In the country, finance minister, Sri Mulyani Indrawati, agrees with what many economic observers and analysts that the worst-case scenario for Indonesia’ economic growth will be in the range of zero to -2 percent in the third quarter of 2020 and there is the possibility of entering into a recession.
The negative projection appears because the economic activity of the people and the business world, which has begun to recover since June 2020, is apparently not strong enough to continue. Moreover, the coronavirus continues to increase in Indonesia, especially in Jakarta, so that the transition period continues to be extended.
Yesterday, Indonesian Rupiah strengthened 0.15 percent to 14,649 per US dollar and the Jakarta Composite Index (JCI) gain of 1.2 percent to 5,338 levels. Today, the stock index is expected to move between 5,350 – 5,500 and the local currency in the range of 14,610 – 14,680 versus the Greenback.
Stocks that can be watched today are PT Ramayana Lestari Sentosa Tbk (IDX: RALS), PT Gudang Garam Tbk (IDX: GGRM), PT Ciputra Development Tbk (IDX: CTRA), PT Bank Mandiri Tbk (IDX: BMRI), PT Indofood Sukses Makmur Tbk (IDX: INDF), PT AKR Corporindo Tbk (IDX: AKRA), PT Ciputra Development Tbk (IDX: CTRA), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Semen Indonesia Tbk (IDX: SMGR), and PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP).
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team. Please Read Our News to Get More information about Indonesia