Busy week for Bank Indonesia (BI). Start with the balance of payment data in the second quarter on Tuesday and to announces the latest BI seven days repo rate for August on Wednesday - Photo: Special

JAKARTA (TheInsiderStories) – Good Morning! Happy Independent day for Indonesia. Busy week for Indonesia and the world. Start with the trade and balance of payment data in the second quarter by Bank Indonesia and statistic bureau on Tuesday.

The central bank has agenda to announces the latest BI seven days repo rate for August on Wednesday. Last month, the Bank has cut the benchmark rate to 4 percent. This month, BI its expecting to cut again the rate to support the economic recovery.

Monetary policy decisions will come from the Philippines. While, the Reserves Bank of Australia’ meeting minutes will be closely monitored for policymakers’ latest assessment of the economic outlook.

 Globally, with a resurgence of the coronavirus in parts of the world, and associated lockdowns re-imposed, flash August Purchasing Manager’ Index (PMI) updates for major economies in the coming week will be under the spotlight as analysts seek fresh insights into the prospect of further economic recovery.

The worldwide PMI surveys indicated a strengthening of global economic growth during July, but the upturn remained subdued by containment measures. This has sent a warning signal that global growth could slow again after the initial rebound, particularly when recent weeks have seen some restrictions re-introduced.

In the United States (US), focus will turn to the flash PMI survey data to assess the pace of the recovery midway through the third quarter, with eyes particularly on the PMI’ gauge for employment. The release of the Federal Open Meeting Committee minutes will be closely assessed for clues regarding any future policy movements.

The markets also will look out for any progress in the fiscal plan negotiations in America. From Asia Pacific, flash PMI data for Japan and Australia will be eyed, with the latter drawing particular scrutiny to gauge the economic impact of new COVID-19 restrictions imposed in Victoria amid a sharp rise in infections.

GDP numbers in Thailand are expected to make grim reading, reflecting the trend seen across many Asian economies where data has already been released. While, investor concerns over deteriorating US – China trade relations and uncertainty about the timing of the American stimulus package.

In Europe, the flash PMI surveys for the United Kingdom (UK), Eurozone, France and Germany are supplemented by other key releases, including retail sales, inflation and household finance figures in the UK, as well as sentiment surveys in the Eurozone.

Other agenda, Organization Petroleum Exporters Countries has a virtual meeting on Wednesday to evaluates the latest global oil market condition. One member, Oman, recorded a decline in oil exports by 14 percent in July compared to the previous month. Global oil producers have also started to ease production limits this month.

On Friday, Indonesian Rupiah closed down 0.14 percent to 14,795 per US Dollar and the Jakarta Composite Index (JCI) strengthened 0.16 percent to 5,247.69 compared to previous day. No transaction today in the local bourse and money market.

-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