JAKARTA (TheInsiderStories) – Good Morning! This week we will sees the first of the United States (US) presidential debates and non-farm payrolls, inflation data, and worldwide Purchasing Managers Index (PMI) surveys. The latest data on the America’ economy have shown a strong rebound in the third quarter.
But recent PMI numbers have hinted at a slowing in the pace of expansion both in US and globally. This slowing is expected to be corroborated by a further cooling in the rate of healing of the labour market when non-farm payrolls are updated on Friday.
Current consensus estimates suggest 875,000 jobs were added in September, with the jobless rate edging down from 8.4 percent to 8.3 percent, but that will be the smallest monthly jobs gain seen this side of the pandemic, and will add further to calls for additional support to the recovery.
A comprehensive insight into the wider manufacturing recovery will meanwhile be provided by the global PMI surveys. While the flash PMIs for September indicated that further manufacturing gains helped offset a renewed weakening of growth in the service sector, the final data will be eyed in particular for signs that Asian producers outside of China are also starting to recover.
China’ PMI data will also be important to watch, given weight in global manufacturing and its earlier start on the road to recovery from COVID-19. Monetary policy decisions will come from India and the Philippines while Vietnam will be among the first to release third quarter GDP figures.
In Europe, the PMIs are accompanied by official unemployment and inflation data, which will be scrutinised closely amid growing expectations of additional stimulus from the European Central Bank. In Indonesia, the statistic bureau have an agenda to releases the inflation and tourism data during this month.
On Friday, Indonesian Rupiah gained 0.12 percent to 14,873 per US Dollar and 2.13 percent while the Jakarta Composite Index (JCI) headed for 4,945.79 compared to prior day. However, during last week the local currency weakened by 0.94 percent and the stock index almost flat.
Financial market, they rated, still have a risk averse amid the economic uncertainty. However, the additional stimulus proposed by the Democrat Party worth US$2.2 trillion will increase the supply of US Dollars and will have the opportunity to weaken.
The movement of both instrument, it said, will still be influenced by external factors, including the debate between Donald Trump and Joe Biden ahead of the November’ US election. This condition could create uncertainty in the market, which could boost demand for safe havens.
However, if there are positive developments around vaccines, it could also lift assets risky. For this week, the analyst sees that the Rupiah will move in the range of 14,750 to 15,050 versus the Greenback.
While, the JCI in the range 4,850 to 5,020. The stocks to be watch for this week are banking, retail, commodity, industrial, and blue chip stocks.
-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