United States (US) - China trade war remains firmly in focus as new talks scheduled - Photo by the White House Office

JAKARTA (TheInsiderStories) – Good Morning! This week, United States (US) – China trade war remains firmly in focus as new talks scheduled. In the coming days, US’ retail sales among key data release to add insight of Federal Reserves’ next move.

Still from US, President Donald Trump warned he will continue to impose sanctions on whoever purchases Iran’ oil or conducts business with Iran’ Revolutionary Guards and no oil waivers will be re-issued.

Iran‘ crude oil exports were slashed by more than 80 percent due to re-imposed sanctions by the United States after President Donald Trump exited last year Iran’ 2015 nuclear deal with world powers.

Yesterday, US President Donald Trump has cancelled and called of peace negotiations with Afghanistan leader after blamed the country use an attacked in Kabul to take credit at the meeting. Inviting Taliban leaders onto American soil is an unprecedented move and a significant development in the country longest running war just days from the anniversary of the terrorist attacks on Sept. 11, 2001.

From Europe, French President Emmanuel Macron and his Russian counterpart Vladimir Putin spoke by phone on Sunday ahead of a meeting of the joint Franco-Russian Council on security issues, Iran, and a recent prisoner swap between Ukraine and Russia. The summit called “Normandy” group – France, Germany, Russia and Ukraine scheduled today in Moscow.

While, British prime minister Boris Johnson will go to court to challenge the order from parliament to delay Brexit before the deadline on Oct. 19. As known Member of Parliament has rejected the premier’ proposal to pull out from European Union.

Shortly after UK’ parliament decision, Pound Sterling surged against the Greenback, as the markets react to Johnson losing control of Brexit. The currency hit $1.2347, its strongest value in a week followed by an overnight surge 0.4 per cent.

Beside the issues, during the week, European Central Bank set to introduce fresh stimulus amid deteriorating economic data flow. Then, United Kingdom (UK) recession risk to be highlighted by GDP data, labour market update to guide the Bank of England.

While, from Asia, Japan GDP updates under scrutiny as sales tax hike nears. On Sept. 10, Bank Indonesia will announce the Retail Sales Index. In June the index lowered to 1.8 percent after peak season in Ramadhan and Eid Fitr.

In Asia, South East Asian (ASEAN) economic ministers holds its 24th Meeting with Japan to discuss various efforts to enhance cooperation
the economics of both parties in Bangkok, Thailand. At present, Japan is the third largest trading partner and source of foreign investment the second largest for ASEAN.

At the meeting, Japan offered various economic cooperation projects that are very positive for ASEAN, especially in the face of developments in the progress of digital technology in the era of the industrial revolution 4.0

On Friday, Indonesian Rupiah closed up 0.38 percent to 14,101 compared to US Dollar and the Jakarta Composite Index (JCI) ended up 0.03 percent to 6,308.95. This week, the two major instrument believing will continue to strengthen amid the US-China planned to meet this week in Washington.

Other positive sentiment related to Chinese liquidity policy. Its known that China decided to rise the volume of credit and reduce the amount of cash reserves to be able to boost liquidity and the economic growth by the trade war. In addition the planned meeting of US and China’ official in early October also become a positive sentiment that affects the market.

Today, the analysts sees Rupiah to move in the range 14,050 to 14,100 over the Greenback and the  JCI would still consolidate with support at 6,281 and resistance 6,404 levels. Stocks that are eligible to be accumulated on Monday are PT Astra Agro Lestari Tbk (IDX: AALI), PT Bumi Resources Tbk (IDX: BUMI), PT Semen Indonesia Tbk (IDX: SMGR), PT Gudang Garam Tbk (IDX: GGRM), PT HM Sampoerna Tbk (IDX: HMSP), PT Telkom Indonesia Tbk (IDX: TLKM), and PT Unilever Indonesia Tbk (IDX: UNVR).

May you have a profitable week!

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