JAKARTA (TheInsiderStories) – On Monday, Prime Minister of United Kingdom, Boris Johnson have a video call with President of European Uniton Ursula von deer Leyen and European Parliament’ president David Sassoli talked on the Brexit issues.
Both parties have said new momentum is needed in negotiations on their future relationship and there was a “very good” chance of getting a trade deal by December after the sides agreed to intensify talks next month.
Today, UK labor data Claimant Count Change will be released and has the potential to be a driver for the Pound Sterling rate against the US dollar. And from Germany, inflation data and economic sentiment survey for the Eurozone and Germany will determine the direction of the Euro against the US dollar.
From the United States (US), Federal Reserves (Fed) fulfills its promises of buying bonds in the market using the Secondary Market Corporate Credit Facility. The central bank also added its purchasing strategy and said it would follow a diverse index of US corporate bonds made specifically for the facility.
Today, the market will be watching the Fed Governor Jerome Powell’ accountability speech. The US has scheduled to release a retail report tonight and is estimated to be the driver of the American Dollar and the price of gold.
While in Asia, the Australian Central Bank and Bank of Japan will announce the minutes of the last monetary policy meeting. In Indonesia, finance minister, Sri Mulyani Indrawati, will hold a presser on the latest 2020 State Budget position until May. I
n April, the country experienced deficit 0.44 percent of gross domestic products and the state revenues only grew 3.2 percent to Rp549.5 trillion (US$36.37 billion) from a year ago due to the low tax incomes.
The government spending recorded Rp623.98 trillion or has reached around 23.87 percent of the 2020 State Budget ceiling. Recently, the ministry announced the budget deficit could widens to 6.27 percent to help the country face the COVID-19 pandemic.
And, Bank Indonesia will announced the retail sales survey stance during April. In March, the index contraction 4.5 percent from previous month contracted 0.8 percent. The drop was the deepest contraction since August 2011.
On Monday, the central bank announced, the external debt position of Indonesia was recorded at US$400.2 billion in April, consisted of public debt (government and central bank) of $192.4 billion and private debt (including state-owned enterprises) of $207.8 billion. The amount grew 2.9 percent compared to last year and higher than 0.6 percent from the previous month.
Total outstanding of the government debt was $189.7 billion, grew by 1.6 from previous year and contracted by 3.6 percent against March. The increasing government’ debt position was influenced by capital inflow from state bond as part of funding needs to tackle the COVID-19 outbreak.
From the market, investor concern over the second wave of COVID-19 outbreaks is expected become a scourge that will bring the Jakarta Composite Index (JCI) and Rupiah into the red zone again. Beside, investors will also wait and see waiting for Bank Indonesia’s interest rate policy.
On Monday (15/6), the number of positive cases in Indonesia reached 1,017 cases. Thus, the total positive cases of COVID-19 in Indonesia reached 39,294 positive cases.
Yesterday, Indonesian Rupiah closed up 0.13 percent to 14,115 per US dollar and the Jakarta Composited Index (JCI) fell 1.3 percent to 4,816 against the previous day. The Rupiah was able to strengthen when the majority of other Asian currencies entered the red zone.
The analysts said, some of the sentiments that will affect the movement of both instruments for today come from policies and economic data of a number countries.
Today JCI is predicted to weaken with a range of 4,777 – 4,886 and Rupiah is predicted to move in the range of Rp14,095 to Rp14,150 against the Greenback. Stocks to be watch are PT Japfa Comfeed International Tbk (IDX: JPFA), PT Bank Centra Asia Tbk (IDX: BBCA), PT Telkom Indonesia Tbk (IDX: TLKM), and PT Gudang Garam Tbk (IDX: GGRM).
Then, PT Barito Pacific Tbk (IDX: BRPT), PT Manunggal Mega Property Tbk (IDX: MPPL), PT Jasa Marga Tbk (IDX: JSMR), PT Unilever Indonesia Tbk (IDX: UNVR), PT Merdeka Cooper Gold Tbk (IDX: MDKA), and PT Tower Bersama Infrastructure Tbk (IDX: TOWR).
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia