Investors around the globe concerns on the tension between China and the United States (US), which is increasingly heating up - Photo by Reuters

JAKARTA (TheInsiderStories) – Good Morning! United States (US) treasury department revoked currency manipulator label from China on Monday (01/12). The decision reversing its August finding which had roiled financial markets.

The decision came as Chinese delegation arrived in Washington ahead of Wednesday’ signing of a phase one trade agreement to ease tensions between the world’ two largest economies. Over 18 months a tit-for-tat tariffs of the two countries have weighed on global growth.

At the same day the department announced, US’ budget deficit widened to US$356.6 billion in the first quarter of fiscal 2020 as spending rose more than revenue. The gap increased 11.8 percent from the $318.9 billion in previous quarter of 2019. The fiscal deficit is set to surpass $1 trillion in fiscal 2020 and would be the highest since the financial crisis.

Today, America’ labor department will issue the December consumer price index. Economists expect the last month’ inflation to have risen 0.3 percent and the core CPI a 0.2 percent rise for the month and in annual basis is expected to be up 2.3 percent, the same as in November.

Then, American Petroleum Institute snapshot on US oil inventories will released today. Last week the agency reported a drawdown of about 5.9 million barrels. That was at odds with the Energy Information Administration, which reported an unexpected build in crude stockpiles, along with a bug jump in gasolines and distillates.

From Asia, Indian government announced to imposes countervailing duties on copper rods and wires imported from Indonesia, Malaysia, Thailand and Vietnam at a rate of between 2.47 and 10.27 percent in the next five years. The country’ trade agency, showed that domestic companies were hurt by imports of copper wire from the four countries to India at subsidized prices.

From Indonesia, joint defense regional commands assured that Chinese coast guard and fishing vessels having departed from Indonesia’ exclusive economic zone (EEZ) near Natuna waters in Riau. It said, seven naval ships were deployed to support the routine patrols in the island.

Following state-owned insurance firm, PT Asuransi Jiwasraya and PT ASABRI, the Financial Services Authority will tighten supervision of non-bank financial institutions. Aside from that, the regulator will produce numerous new regulations in all financial sectors.

As reported, Jiwasraya and ASABRI has been stated to bear loss due to their faulty investment practices in low quality stocks and mutual funds. Both companies was suspected losses of Rp 10 trillion (US$714.28 million), respectively, as a result of their investment in low quality stocks and mutual funds.

Yesterday, Indonesian Rupiah closed up 0.72 percent to 13,673 per US dollar and the Jakarta Composite Index landed at 6,296 or strengthened 0.34 percent compared to last week. On Tuesday, the local currency its expecting will move in the range of 13,600 – 13,700 compared to the US Dollar and the stock index will tend to strengthen in the range 6,218 – 6,348.

The stocks to be watch for today are PT Astra Agro Lestari Tbk (IDX: AALI), PT Mayora Indah Tbk (IDX: MYOR), PT Astra International Tbk (IDX: ASII), PT HM Sampoerna Tbk (IDX: HMSP), PT Bank Tabungan Negara Indonesia Tbk (IDX: BBNI), PT Bank CIMB Niaga Tbk (IDX: BNGA), PT Indocement Tunggal Prakarsa Tbk (IDX: INTP), PT Malindo Feedmill Tbk (IDX: MAIN), and PT Semen Indonesia Tbk (IDX: SMGR).

May you have a profitable day!

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