JAKARTA (TheInsiderStories) – Good Morning! The coming week sees flash PMI surveys released for the United States (US), Eurozone, Japan, United Kingdom (UK), and Australia, which will provide the first insights into how these economies have ended in the third quarter. While, monetary policy meetings are convened in New Zealand and Thailand.
The August PMI data indicated a further strengthening of the rebound of global business activity from the collapse seen in the second quarter, but many consumer-facing sectors remained in decline and worries over renewed lockdown measures amid fresh waves of infections have hit activity, notably in Europe.
In the US, the manufacturing expansion remained lackluster and consumer services providers continued to report falling activity as virus worries persisted. The September manufacturing and services data will therefore provide a valuable guide to whether momentum is being sustained or lost as we head into the fourth quarter.
The US also publishes durable goods orders data for August, alongside key housing market metrics for new and existing homes sales, as well as home prices. Flash PMI data for the Eurozone and UK will be especially eagerly awaited, not least by policymakers seeking a grasp on recovery momentum.
In addition, rising COVID-19 infection rates caused renewed economic contractions in Italy and Spain during August, according to the PMIs, raising fears that the eurozone’s recovery is fading. In Asia Pacific, mainland China’ industrial profits are issued as well as industrial production data for Singapore and Taiwan, plus trade numbers for Taiwan, Hong Kong SAR and Thailand.
As these data only show the situation to August, its the timelier PMI numbers for Japan and Australia for September that will likely steer sentiment on recovery trajectories for the region. In Thai, protester urged Prime Minister, Prayut Chan-o-cha stepped down.
Protesters have grown ever bolder during two months of demonstrations against Thailand’ palace and military-dominated establishment. While, attention is turning back to negotiations on fiscal stimulus and the forthcoming US election.
Globally, coronavirus cases have now surpassed 30 million, casting a gloomy pall over prospects of a V-shaped economic recovery. In Indonesia, the task force reported additional positive cases over than 4,000 for the first time.
In Friday, Indonesian Rupiah closed up 0.66 percent to a level of 14,735 per US Dollar and the Jakarta Composite Index (JCI) jumped 0.41 percent to 5,059.22 compared to the previous day. This week, both of them are expected have a window to strengthen followed the economic recovery that occurred in the second semester.
The analysts rated, the biggest threat to global GDP is a resurgent pandemic, with analysts fearing growth and inflation could surprise on the downside in the coming year. Adding to worries, European countries from Denmark to Greece announced new restrictions on Friday to curb surging coronavirus infections in some of their largest cities, while Britain was reported to be considering a new national lockdown.
During the week, said the observer Rupiah its expecting move in the range 14,600 – 14,800 and the JCI between 5,002 – 5,123. Stocks that can be watched are in banking sector, pharmacy, telecommunication, mining, oil and gas, also food and beverages.
-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