JAKARTA (TheInsiderStories) – A busy week ahead includes the eagerly awaited Unite States (US) Federal Open Meeting Committee meeting, manufacturing Purchasing Manufacturing Indexes (PMIs) from around the world, US non-farm payrolls, GDP data from both the US and eurozone, as well as a key Bank of Japan meeting.
All of which takes place against the backdrops of the Britain’ scheduled departure from the European Union (EU) and a US earnings season in full swing. Markets will be on tenterhooks ahead of the FOMC’ meeting on Wednesday (10/30), currently pricing-in a further cut.
Last month, the FMOC cut its federal funds rate (FFR) for second time to 1.75 – 2.0 percent. It was the second cut in this year to boost US economy amid the slowing growth. Similarly, US GDP, non-farm payrolls and PMIs from both the ISM and IHS Markit will guide markets in what will also be a key week for earnings reporting.
US’ President Donald Trump announced the Islamic State (ISIS) leader Abu Bakr al-Baghdadi had been killed in a military operation in Syria. The death of al-Baghdadi demonstrates the US commitment to the enduring and total defeat of ISIS and other terrorist organizations, he adds. Al-Baghdadi, establishment of ISIS in June 2014.
From North America, Chile‘ president Sebastian Pinera sacked all his cabinet members and promised reforms in a bid to end mass protests. The leader has struggled to manage widespread unrest that has gripped his country this week amid anger over inequality. At least 20 people have been killed since rioting broke out earlier this month.
Eurozone PMI data meanwhile accompany the single currency area’ official GDP release for the third quarter, and will help steer policymaking at the European Central Bank, as Christine Lagarde steps in to take the helm of the central bank.
British Prime Minister Boris Johnson said it would take longer to study on Brexit bill. He also asked parliament to hold elections on Dec. 12 to break the political deadlock around Brexit.
In Asia, China PMI form just one of 12 survey releases for the region from the global manufacturing PMI suite. Bank of Japan policy meeting will also be under the limelight after signs of the economy being hit by the recent sales tax hike. While, Hong Kong and Taiwan GDP data are also published, with the former likely to draw particular attention given recent events.
In Indonesia, President Joko Widodo will inaugurate the longest bridge in Papua, Holtekamp. This was the first visited from the head of state to the island after long rally from the society.
On the Regional Comprehensive Economic Partnership (RCEP), a landmark trade deal between ASEAN countries and six major economies, will be signed in November 2020. The trade ministry’ director general, Iman Pambagyo, said the finalization of the pact, including dealing with technicalities like translation, will happen in the first quarter of next year.
Last weekend, Indonesian Rupiah strengthened 0.15 percent to 14,038 against the US dollar and the Jakart CompositeIndex (JCI) closed down 1.38 percent to 6,252.35 on Friday (10/25).
Some analysts rated that the local currency strengthened due to the decline in the benchmark interest rate. The decline also indicates that Bank Indonesia is optimistic about the economic growth.
Beside, the Rupiah and JCI strengthened because the US dollar was pressured amid the expectations FOMC will cut the federal fund rate again this week. In Addition, the observer sees, BI remained in the market in order to maintain the currency volatility.
For this week, they rated, JCI was also colored by postwar trade war sentiment between US and China. While from domestic, there is no sentiment that can affect the market.
Today, the observers believed the Rupiah has the potential to strengthen in the range of 13,980 – 14,080 over the Greenback and the JCI in the range 6,143 to 6,348.
The stocks to be watch are PT AKR Corporindo Tbk (IDX: AKRA), PT Telkom Indonesia Tbk (IDX: TLKM), PT Astra International Tbk (IDX: ASII), PT United Tractor Tbk (IDX: UNTR), PT HM Sampoerna Tbk (IDX: HMSP), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Bank Central Asia Tbk (IDX: BBCA), PT Mayora Indah Tbk (IDX: MYOR), and PT Unilever Indonesia Tbk (IDX: UNVR).
May you have a profitable week!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia