JAKARTA (TheInsiderStories) – Good Morning! This week we will GDP data for the United States (US) and Eurozone accompanied by central bank policy meetings in the US, Eurozone and Japan. PMI data for China will also be eagerly anticipated.
Policy meetings at the Bank of Japan, the Federal Reserve and the European Central Bank (ECB) will be scrutinized for their views on the global economy and guidance on potential changes to the policy stance after key indicators showed alarming declines.
While, flash PMI surveys showed record rates of economic collapse in all major developed economies in April as a result of increasingly drastic measures taken by governments to contain the COVID-19 pandemic.
In the US, the policymakers has already held two unscheduled policy meetings in which emergency stimulus was announced, and analysts will be eager to see the response to the recent further deterioration in the data flow. First quarter GDP data will set the scene and are expected to show the economy already in decline.
Similarly, preliminary first quarter GDP estimates for the Euro area, including releases for France, Spain and Italy, are released in a week where the ECB policy meeting will be closely watched for signs that further mulled easing measures could be deployed. Several manufacturing PMIs and eurozone inflation data are also released.
In Asia, eyes will focus on China and the April updates to PMI surveys from Caixin and the NBS, with hopes pinned on better news after initial signs of the sector stabilizing in March. Final manufacturing PMI data for Japan will also be closely watched as the central bank meets, albeit with little appetite seen for further stimulus just yet.
The week also sees earnings updates from notable names such as Alphabet, Microsoft, Apple, Amazon, Facebook, Spotify, Tesla, Mastercard, Visa, Merck, Pfizer, Pepsi, Starbucks, McDonald’s, UPS, AMD, Caterpillar, Shell, Exxon Mobil and Chevron.
In the last few weeks, panic on the pandemic issues has declined along with the easing of the increase number of positive cases and the amount of stimulus that the government and central banks poured out in several countries. Italy has decided to start loosening the lockdown on May 4 to restore the economy due to COVID-19 which is predicted to contract up to 8 percent this year.
Countries such as Germany, France, Spain and Austria have already announced lockdown easing as the level of virus infection continues to fall and the pressure to reopen business increases. Europe has recorded the deaths of up to 100,000 people who have brought the toughest recession of all time. The country’ leaders struggled to approve a EUR540 billion (US$586.06 billion) aid budget for the short term, but failed to make progress on the long-term plan.
End of last week, Indonesian Rupiah was parked at 15,400, up 0.1 percent compared to the US Dollar, as all other Asian currencies weakened. In year to date, the local currency has weakened 11.06 percent against the Greenback.
While, the Jakarta Composite Index closed down 2.12 percent to 4,496.06. On Monday, the local currency is expected to move in the range of 15,250 – 15,650 per American Dollar and the stock index between 4,443 – 4,569.
Shares that can be considered today are includes PT Medco Energi Internasional Tbk (IDX: MEDC), PT Astra Agro Lestari Tbk (IDX: AALI), and PT Indosat Tbk (IDX: ISAT), PT Gudang Garam Tbk (IDX: GGRM), PT Bank Mandiri Tbk (IDX: BMRI), PT Indika Energy Tbk (IDX: INDY), PT Indotambang Megah Raya Tb (IDX: ITMG), PT Japfa Comfeed Indonesia Tbk (IDX: JPFA), PT Mayora Indah Tbk (IDX: MYOR), PT Chandra Asri Petrochemical Tbk (IDX: TPIA), PT Bank Central Asia Tbk (IDX: BBCA), PT Telkom Indonesia Tbk (IDX: TLKM), PT Ace Hardware Tbk (IDX: ACES, and PT Astra International Tbk (IDX: ASII).
May you have a profitable Week!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia