European Parliament warned would veto British Prime Minister Boris Johnson' Brexit proposals and saying they are "not even remotely acceptable" as a solution to the Irish border problem - Photo: Privacy

JAKARTA (TheInsiderStories) – Good Morning! This week we will sees the United Kingdom (UK) leaves the European Union is also packed with policy action from the Federal Reserves (the Fed) and the Bank of England (BoE), alongside GDP updates from major economies.

Increasing market jitters are expected as Brexit Day approaches at the end of the week. While, the BoE meets in the week, and prospects of a rate cut hinge on British economic performance at the start of the year. The question is whether the BoE will join central bank peers in cutting interest rates.

The Eurozone is to release GDP data on Friday, which is forecast to show the economy expanded 0.2 percent from the previous three months, backing up the European Central Bank’ view of “ongoing, but moderate growth.” On Wednesday, the Federal Open Market Committee looks set to continue sitting on its hands for an extended period barring any material changes to the US outlook.

GDP updates for the America and Eurozone will be in focus as well, with expectations of steady growth in the US, but only subdued expansion in the Euro area during the fourth quarter of 2019. US is to release advance fourth quarter GDP figures on Thursday, with analysts forecasting growth of 2.1 percent.

In Asia, Bank of Japan summary of opinions will be scrutinized for clues of the likelihood of tighter monetary policy following growth forecast upgrades at the recent policy meeting. India’ 2020 budget will also be watched closely for any announcements of fiscal measures amid a growth slowdown, while an updated official estimate of 2019 – 2020 GDP projection will be eagerly anticipated.

China’ government-sponsored PMI figures would provide clues as to whether recent manufacturing recovery had gained pace. On the Wuhan issues, after Lion Air Group, now state-owned flight carrier PT Garuda Indonesia Tbk (IDX: GIAA), PT Citilink Indonesia, and PT Angkasa Pura improve the anticipatory effort and vigilance over the spread of the novel coronavirus.

Growing fears over the scope of the coronavirus outbreak are likely to keep global markets on edge this week. Market participants are keeping a wary eye on developments surrounding the coronavirus outbreak which has infected more than 2,000 people, the vast majority in China where 56 people have died. The virus has also spread to the US, Thailand, South Korea, Japan, Australia, France and Canada.

Last Friday, Indonesian Rupiah closed up 0.42 percent to 13,582 a US Dollar and the Jakarta Composite Index dropped 0.08 percent to 6,244.11 compared to prior day. The strengthening of the local currency, said the analysts, influenced by foreign inflows.

Based on data from the finance ministry, foreign ownership in the government bond has reached Rp1,087.14 trillion (US$77.65 billion), with new entry Rp25.28 trillion.  In addition, since September 2019, the Fed has injected funds of $500 billion into the money market in the form of repos to stabilize liquidity in the US by suppressing interbank lending rates.

This week, said the observers, the major instruments still influenced by the widespread of the coronavirus. With the various data, over this week the Rupiah its expecting move in the range of 13,500 to 13,670 over the Greenback. And the JCI between 6,200 – 6,278 from last weekend.

The stocks to be considered, said the analysts are , PT Japfa Comfeed Indonesia Tbk (IDX: JPFA), PT Bank Tabungan Negara Tbk (IDX: BBTN), PT Bank CIMB Niaga (IDX: BNGA), PT Bank Permata Tbk (IDX: BNLI), PT AKR Corporindo Tbk (IDX: AKRA), PT Antam Tbk (IDX: ANTM), PT Wijaya Karya Tbk (IDX: WIKA), PT Waskita Karya Tbk (IDX: WSKT), PT Adaro Indonesia Tbk (IDX: ADRO), PT Vale Indonesia Tbk (IDX: INCO), and PT Indotambang Megah Raya Tbk (IDX: ITMG).

May you have a profitable Week!

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