After signs from the latest business surveys that the global recovery accelerated in August as economies continued to open up after COVID-19 lockdowns - Photo: Special

JAKARTA (TheInsiderStories) – Good Morning! After signs from the latest business surveys that the global recovery accelerated in August as economies continued to open up after COVID-19 lockdowns, confirmation of solid starts to the third quarter will be sought from industrial production numbers for the United Kingdom (UK), Germany, Italy and Spain.

Then, a trade numbers for China, Taiwan, Germany and Britain. New estimates of GDP data for Japan, Russia and the Eurozone are expected to confirm second quarter woes.

In the United States (US), inflation data are updated alongside labour market indicators in the form of jobless claims and job openings. The weekly jobless claims numbers in particular will be eyed for the ongoing impact of lockdowns, which were tightened on average across the US in August but are now easing again.

In terms of policy action, the latest European Central Bank monetary policy decision will be eagerly awaited for clues as to the possibility of further stimulus later this year amid signs of falling prices and hints of a stumbling recovery as Italy and Spain tightened lockdowns. In the UK, July’ GDP data will likely show the economy surging, though recent survey data have hinted that growth could fade after the initial rebound.

In Asia Pacific, the import and export data published for China and Taiwan will be in particular focus as recovery hopes for the region are dependent on trade flows picking up, having been curbed by pandemic supply chain disruptions and weak demand. China’ inflation data, Japan’ machinery orders and Indian industrial production are also notable releases.

Malaysia central bank watchers meanwhile have mixed views on whether further stimulus will be announced at the forthcoming monthly meeting. In Indonesia, the central bank will announce the position of foreign reserves for the month of August today.

On Tuesday, the Bank will report August’ consumer survey and on Wednesday the retail sales survey report for July 2020. While today, President Joko Widodo will chair a plenary cabinet session on the topic of health and economic recovery for 2021 and finance minister Sri Mulyani Indrawati will attend a working meeting with Commission XI of the parliament to discuss the draft of 2021 State Budget.

For this week, the analysts rated, the latest US economic data and the Federal Reserves’ strong signal to implement a low interest rate policy will give a prospect of the weakening of the Greenback. To note, the non-agricultural employment data for the August period fell from 1.734 million to 1.371 million.

However, the US unemployment rate managed to fall from the previous 10.2 percent to 8.4 percent. In addition, the American dollar index is at the level of 92.874.

From domestic, the sentiment will affecting the financial market still originates from the government’ planned on the financial sector reform, including the Bank Indonesia Law. Indonesian Rupiah and the Jakarta Composite Index (JCI) also would be affected by selling off US technology stocks for fear of already in high valuations.

Based on various information, this week, the Rupiah its expecting move in the range 14,650 – 14,800 versus the US Dollar and JCI is expected to move within the range of support levels 5,150-5,330. Last Friday, the local currency parked at 14,750 against the Greenback or strengthened 0.19 percent and the stock index fell 0.78 percent to 5,239.85 compared to prior day.

Stocks to be watch for this week are PT HM Sampoerna Tbk (IDX: HMSP), PT Unilever Indonesia Tbk (IDX: UNVR), PT Mayora Indah Tbk (IDX: MYOR), PT Indofood Sukses Makmur Tbk (IDX: INDF), PT Gudang Garam Tbk (IDX: GGRM), PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP), and PT Astra Agro Lestari Tbk (IDX: AALI).

-IHS Markit contributed to this briefing

May you have a profitable Week!

Written by Linda Silaen, Please Read Our News to Get More information about Indonesia