The week ahead sees some Asian GDP updates and central bank meetings in the United Kingdom and Brazil also appears this week - Photo: Privacy

JAKARTA (TheInsiderStories) – Good Morning! The week ahead sees some Asian GDP updates and central bank meetings in the United Kingdom and Brazil also appears this week. Plus, the United States (US) earnings season in full swing with over 1,300 companies reporting

There are also key worldwide purchasing manager’ index (PMI) and US job market data releases to watch. PMI surveys for April, covering manufacturing and services, are published worldwide on the heels of flash PMI data which showed steepening rates of economic collapse.

Detailed sector PMI numbers will also record the extent of the impact for different industries. With measures taken to contain the COVID-19 outbreak having intensified in many countries during the month, notably in the US and Europe, the economic impact appears to have been commensurately greater.

Manufacturing PMI data for China, already released up to April, have meanwhile shown only a very modest recovery, suffering a re-acceleration in the rate of export decline, hinting strongly that the recovery could fade. So far the service sectors have taken the hardest hit from social distancing.

With China having started removing some of the restrictions earlier, markets will therefore be looking to the Chinese service sector PMI data for indications of the extent of potential rebounds.

Elsewhere in Asia, while the PMIs will give clues as to how economies have performed at the start of the second quarter, first quarter GDP numbers will help assess COVID-19 impacts on Hong Kong SAR, Indonesia and the Philippines.

Brazil’ interest rates look set to be cut to fresh record lows next week as the country fights an economic crisis that has led to its currency hitting an all-time low. Analyst will also be eager to see Bank of England rate setters’ reaction to news of the Britain economy contacting at an unprecedented rate in April.

The week rounds off with the US employment report. Non-farm-payrolls are widely expected to have fallen sharply and Federal Reserves chair Jerome Powell has warned that the  unemployment rate could spike into double digits. Worse will likely follow. US GDP has already fallen at a 4.8 percent annualized in the first quarter and our GDP tracker  points to a 37 percent plunge in the second quarter.

In Asia, South Korean and North Korean troops exchanged gunfire at their border on Sunday morning. No casualties in South Korea were reported at the Korean Peninsula battle.

In Indonesia, the statistic bureau will announces April’ inflation and tourism development in the Southeast Asian largest economy. Last month the inflation stood 0.19 percent at and in annual basis 2.96 percent.

Other agenda, the minister of finance, governor of Bank Indonesia, chair of the Financial Services Authority, the Head of the Indonesian Deposit Insurance Corporation and the Minister of Law and Human Rights will hold a working meeting with the Indonesian Parliamentary budget committee. The working meeting of the Commission III also hearing with the minister of health to discusses the situation of the COVID-19 in Indonesia.

In addition, the parliament has agenda hearing with energy and mineral resources ministry to discuss the oil price, electricity, and other issues. The average price of Indonesian crude oil  during March 2020 was recorded at US $ 34.23 a barrel. While President Joko Widodo will receive regular reports on handling COVID-19 from the task force.

Last week, Indonesia Rupiah printed a 2.7 percent increase to 14,881 per US Dollar and the Jakarta Composite Index (JCI) closed up 3.26 percent to 4,716.40. Today both opened lower 0.58 percent to the level of Rp14,967 per US dollar and the stock index dropped 2.85 percent to 4,582.17.

Shares that can be considered today are PT Cashlez Worldwide (IDX: CASH), PT Bank Central Asia Tbk (IDX: BBCA), PT Agung Podomoro Land Tbk (IDX: APLN), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Indosat Tbk (IDX: ISAT), PT Jasa Marga Tbk (IDX: JSMR), PT Kalbe Farma Tbk (IDX: KLBF), PT Sarana Menara Nusantara Tbk (IDX: TOWR), PT Medco Energi International Tbk (IDX: MEDC), PT XL Axiata Tbk (IDX: EXCL), and PT Telkom Indonesia Tbk (IDX: TLKM). 

May you have a profitable Week!

Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia