The week commences with a focus on the People’s Bank of China’ policy rate meeting, with clues sought as to when some of the emergency pandemic support will be unwound - Photo: Special

JAKARTA (TheInsiderStories) – Good Morning! A full economic calendar for this week starts with inflation data from Statistic Indonesia, worldwide PMI surveys and culminates in Friday’ United States (US) non-farm payroll report. There also, updates GDP for Indonesia and Philippines, trade data for US, China, Brazil, France, Australia, Taiwan, and Germany, as well as industrial production numbers for Germany, Italy, Spain and Malaysia.

Central bank meetings in the United Kingdom (UK), Australia, India, Russia and Thailand will also be in the spotlight, with the Bank of England under particular scrutiny after recent wranglings over recovery prospects. The earnings season also continues with over 1,400 companies reporting.

Global purchasing managers index (PMI) data will be eagerly awaited to assess whether the rebound in business activity from COVID-19 lockdowns has been sustained into July. Flash PMI data brought tentative good news, albeit with conditions varying markedly by country and hinting that growth could falter after this initial rebound.

In the US, analysts are expecting ISM data to pare some of the gains seen in June. Non-farm payrolls are meanwhile set to rise by some 2.3 million, but that would still leave the count more than 12 million below the pre-pandemic peak, highlighting the drag on the economic recovery from the labour market.

In Europe, the Bank of England’ rate setters meet, with projections for growth and inflation updated alongside fresh PMI and house price data. While the Bank’ chief economist sees a V-shaped recovery, not all policymakers are so optimistic. Such caution is perhaps warranted: although the flash UK PMI hit a five-year high in July, job losses accelerated.

In Asia Pacific, China PMI data are among the highlights, but analysts will also be eager to gauge policymakers’ views on recovery prospects following rate-setting meetings at central banks in India, Thailand and Australia. Second quarter GDP for Indonesia and the Philippines will also draw scrutiny, highlighting the impact of the pandemic.

End of last week, Indonesian Rupiah slightly up 0.07 percent to Rp14,600 against the US Dollar. While, the Jakarta Composite Index (JCI) strengthened by 0.7 percent to 5,149 compared to prior day.

For today, the analysts sees that anticipation of a number of macroeconomic data and financial statements from issuers in stock exchange has the potential to trigger a profit-taking earlier this week. With this various economic data, they said, the local currency its expecting move between 14,500 – 14,790 versus the Greenback and the stock index in the range 4,832 – 5,150 during this week.

Stocks to be watch are PT Indofood Sukses Makmur Tbk (IDX: INDF), PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP), PT Astra International Tbk (IDX: ASII), PT Unilever Indonesia Tbk (IDX: UNVR), PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Kalbe Farma Tbk (IDX: KLBF), PT Solusi Bangun Indonesia Tbk (IDX: SMCB), PT AKR Corporindo Tbk (IDX: AKRA), and PT Ace Hardware Tbk (IDX: ACES).

-IHS Markit contributed to this briefing

May you have a profitable Week!

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