JAKARTA (TheInsiderStories) - Good Morning! A stock markets plunged and global oil prices fell off on fears about a COVID-19 resurgence in major countries around the globe. On Tuesday, the number of confirmed cases of the virus-borne illness climbed above 142 million, with India occupying the second slot after the United States (US).
India recorded more than 250,000 new infections and over 1,700 deaths in the past 24 hours alone, casting serious concerns about the mobility of its 1.4 billion people. While, Japan tightened its rules on coronavirus test certificates needed to be submitted by all passengers upon arrival at the airports.
Due to the COVID-19 situation, the Japanese and Indian governments have decided to postpone their foreign and defense ministerial talks scheduled this weekend in Tokyo. From US, chairman of the Federal Reserves, Jerome Powell, asserted will limit any overshoot on inflation target as the world largest economy recovery.
Last month, the central bank slashed its overnight interest rate to near zero after the pandemic hit the US, and has promised to leave borrowing costs unchanged until the economy reaches full employment, inflation hits 2 percent and is on track to “moderately” exceed that level for some time.
In Europe, Russia had fired a barrage of cruise missiles in the Black Sea when Vladimir Putin rejected requests from Western countries to reduce fears of war with Ukraine. Russia says the Caliber cruise missiles were fired as part of a joint military exercise in which more than 20 other military ships and about 50 warplanes were also involved.
From Indonesia, Brunei Darussalam announced Association of Southeast Asian Nation (ASEAN) heads of state and government will hold the Leaders Meeting on April 24 and Sultan Haji Hassanal Bolkiah will chair the meeting on Myanmar situation. The meeting is set to take place at the ASEAN Secretariat in Jakarta.
Then, Bank Indonesia has revised its forecast for the global economic growth from 5.1 percent to 5.7 percent, driven by economic improvements in the US and China that are occurring at a swifter pace than other nations. The economic recovery in US is also expected to be stronger in tandem with the vaccination process that running smoothly and the addition of a larger fiscal stimulus.
In the commodity market, oil price fell more than 1 percent due to infection revival in oil consumers India and Japan. While, the American Petroleum Institute reported US crude stockpiles unexpectedly rose by 436.000 barrels last week, fanning investor fears over a widening glut in supplies at a time when rising global COVID-19 cases has cooled the recovery in demand.
The agency also reported, that gasoline inventories fell by about 1.62 million compared with a 5.6 million fall in the prior week and distillate stocks rose by about 655,000 barrels.
On Tuesday, Indonesian Rupiah closed up 0.34 percent to 14,497 versus the Greenback and the Jakarta Composite Index (JCI) weakened 0.23 percent to 6,038.32 compared to the previous day. The analyst rated, the movement of the two seems to be overshadowed by a wave of pressure from the global market.
In addition, the strengthening of major currencies against the US Dollar also give a positive sentiment for the domestic market, this is reflected in investors chasing risky assets with the higher yields. However, the central bank’ revised economic growth projection could become a negative sentiment for the market.
With these various information, Rupiah its expecting to move in the range 14,450 - 14.550 and the JCI between 5,970 - 6,060. Stocks to be watch for today are PT Astra International Tbk (IDX: ASII), PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Gudang Garam Tbk (IDX: GGRM), PT Semen Indonesia Tbk (IDX: SMGR), PT Bank Mandiri Tbk (IDX: BMRI), and PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP).
May you have a profitable Day!
Written by Linda Silaen and Editorial Team, Please Read Our News to Get More information about Indonesia
