JAKARTA (TheInsiderStories) – The cold war between the United States (US) and China continues to heat up. On Tuesday, President Donald Trump urged China to be transparent with what is known about the origin of the COVID-19 that emerged from Wuhan, China, and has wreaked havoc in the world.
He threatened would release a report detailing the origins of the new virus. He also “bluffed” to put new tariff on Chinese goods.
From Latin America, Fitch has lowered its outlook on Brazil‘ credit rating to negative from stable caused of the epidemic. The agency said, the largest economy in the region to shrink 4 percent in this year with risks to the downside.
Fitch noted a rapidly deteriorating fiscal position and growing political risks in Brazil. It said, the pandemic and the related recession will further increase public indebtedness, eroding fiscal flexibility and increasing vulnerability to shocks.
In Indonesia, there are some important agenda. First, finance minister, governor of Bank Indonesia, head of the Financial Services Authority and the Deposit Insurance Agency hearing on government policy amid the COVID-19 pandemic, the reallocation and refocusing of the 2020 state budget, and changes in macro assumptions.
Other meeting at the parliament, commission V have a coordination meeting with the minister of transportation and minister of public works and public house. Then, commission VI hearing with GoJek and PT Solusi Transportasi Indonesia to discuss actual conditions related to the epidemic.
While, commission VII discusses the mining law. Then, President Joko Widodo will lead a plenary cabinet session related to the 2021 State Budget.
On Tuesday, Indonesian Rupiah strengthened 0.13 percent to 15,080 versus the US Dollar. While, the Jakarta Composite Index (JCI) was parked at 4,630.13 after rising 0.54 percent from the previous day.
Analysts said, global and regional indexes that tended to strengthen became a pillar to support the strengthening of the local currency and stock indexes. However, the pace of both instruments was stifled due to domestic sentiment, namely Indonesia’ economic growth.
According to them, regional and global investors are optimistic about the sentiment of the reopening of the US economy. In addition, investors will also be waiting for some data on the global economy that will be released soon.
The uncertainty of COVID-19 outbreak and the tension between the US and China remains a concern for investors. The plan of the President Donald Trump to limit investment in pension funds could be a trigger for China’ Renmimbi to weaken and other currencies.
With the lack of positive sentiment, analysts expect the Rupiah to move varied with a tendency to weaken in the range of 15,000 to 15,100 per US dollar and JCI between 4,600-4,700.
As for some shares which according to him are worthy of attention include PT Sarana Menara Nusantara Tbk (IDX: TOWR), PT Astra International Tbk (IDX: ASII), PT XL Axiata Tbk (IDX: EXCL), PT Aneka Tambang Tbk (IDX: ANTM), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Bank CIMB Niaga Tbk (IDX: BNGA), PT Bumi Serpong Damai Tbk (IDX: BSDE), PT Telekomunikasi Indonesia Tbk (IDX: TLKM), and PT Surya Citra Media Tbk ( IDX: SCMA).
May you have a profitable Day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia