JAKARTA (TheInsiderStories) – Good Morning! The coming week sees more official data released to cover the month of March, but analysts are going to have to be careful interpreting official numbers as many agencies will struggle to calculate data using established techniques, such as face to face interviews.
More detailed PMI numbers will give valuable insights into precisely where the economic blows have been the most fiercely felt, both by 26 detailed sectors and by major region.
In the United States (US), the IHS Markit flash PMI indicated the steepest downturn in output and hiring since 2009, but the most worrying signals have come from jobless claims. The University of Michigan consumer survey will be eagerly assessed for virus impact in March and inflation numbers will be watched for signs of a growing deflationary threat.
In Asia Pacific, markets will await central bank meetings in South Korea and Australia. Focus will also be on March data coming out for inflation in China, Taiwan, the Philippines and Thailand, plus Japan’ machinery orders.
According to Japanese media, Prime Minister Shinzo Abe will declare a state of emergency over the coronavirus as early as Tuesday, as the number of infections topped 1,000 in Tokyo. Under a law revised in March to cover the coronavirus, the premier can declare a state of emergency if the disease poses a “grave danger” to lives and if its rapid spread could have a huge impact on the economy.
In Europe, British consumer confidence has recorded its biggest fall in more than 45 years, as a widening shutdown of the economy to slow the spread of the COVID-19 hammered households’ financial hopes. The drop in the index to -34 from -9 in, conducted earlier in the month, was the biggest on record.
Economists fear Britain’ economy, like many others around the world, is heading for a severe recession but say a bounce-back is possible later in the year, depending on how the coronavirus outbreak develops.
In the country, the economist explained that at the beginning of the week investors will still be focused on the prospects of world economy against the health crisis and what more steps are issued by policy makers. They also wating for the March consumer confidence index data to be released by Bank Indonesia today.
Last week, Indonesian Rupiah closed up 0.39 percent to 16,430 over the Greenback. Over the past week, the local exchange rate has weakened 0.56 percent. The Jakarta Composite Index (JCI) also edge up 2.02 percent to 4,623.43.
For this week, the analysts rated, the market is still looking for safe investment assets, such as the US Dollar and gold. With this economic data, Rupiah its expecting move in the rangen 16,400 – 16,600 per US Dollar and the stock index between 4,514 – 4,650.
The shares that could still be watch for today are PT Bank Tabungan Negara Tbk (IDX: BBTN), PT Bumi Serpong Damai Tbk (IDX: BSDE), PT Ciputra Development Tbk (IDX: CTRA), PT Jasa Marga Tbk (IDX: JSMR), PT Indocement Tunggal Prakarsa Tbk (IDX: INTP), PT Bank Pan Indonesia Tbk (IDX: PNBN), PT PP Tbk (IDX: PTPP), PT Ramayana Lestari Sentosa Tbk (IDX: RALS), and PT Tjiwi Kimia Tbk (IDX: TKIM).
May you have a profitable Week!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia