Indonesian government poised to begin its mass COVID-19 inoculation drive starting with Coronavac vaccines on Jan. 13 - Photo: Special

JAKARTA (TheInsiderStories) – Good Morning! This week, markets will be steered by COVID-19 infection rates and whether fresh data will show a resurgent impact of the pandemic on the global economy. While, their eyes also eyeing the politics and stimulus talks in the run up to the ever-closer United States (US) presidential election.

With virus infection rates rising in many countries in recent weeks, it was no surprise to see the pace of global economic growth lose a little momentum in September.  In the US, the economic data will be especially keenly eyed in the lead up to the polls, with analysts eager to see updates to industrial production and retail sales to gauge whether the recovery is losing steam.

In US, Donald Trump and Joe Biden were meanwhile scheduled to go head to head again in the second presidential debate, though the clash is looking increasingly unlikely. And, the International Monetary Fund grow gloomier when the World Economic Outlook report is updated in the coming week to show a slower economic recovery, with warnings of the potential for increased longer-term damage to many economies.

On Friday, the White House raised its new stimulus offer to Democrats to US$1.8 trillion from $1.6 trillion. This move is part of an effort to reach an agreement before the 2020 elections. The Democratic-controlled House of Representatives passed a $2.2 trillion bill earlier this month, and both sides have struggled to find consensus between the numbers.

In Europe, industrial production and trade figures for August data will be important steers for understanding the likely size of a eurozone GDP rebound in the third quarter, while in the United Kingdom, jobs data will be closely watched for signs of rising unemployment as the government’s furlough scheme is unwound.

In Asia, China watchers will assess vehicle sales, credit and money supply data to hopefully confirm the sustained pace of economic recovery, while central bank meetings will be held in South Korea, Indonesia and Singapore.

Today, the board of governors of Bank Indonesia (BI) will start a meeting to set monetary policy for this month. The central bank will announce its policy on Tuesday. The next day, the central bank will announces and Survey of Business World Activities and the Prompt Manufacturing Index for the third quarter of 2020.

On Thursday report on Indonesia’ External Debt Statistics for August and Statistics Indonesia for the export-import data for September. On Friday, BI will reported the Third Quarterly Banking Survey Report.

Last Sunday, Jakarta provincial government has decided again to loosen the large scale social restriction starting Oct. 12 to 25. The governor, Anies Baswedan, said the decision based on the task force referenced.

While, Indonesian workers and mass organizations are again discussing the national strikes related to the ratification of the Omnibus Law on the Job Creation. Last Friday, President Joko Widodo stayed wih the opinion that the law was beneficial for Indonesia and still paid attention to the needs of the workers in Indonesia.

At the end of last week, Indonesia Rupiah closed up 0.07 percent to 14,700 per US Dollar. During last week, the local currency has strengthened 1.12 percent and this week has potential to gain again.

The Jakarta Composite Index (JCI) also continued its rally and strengthened 0.29 percent to 5,053.66 on Friday. With the various economic data, like retail sales have decreased by 9.2 percent in August, both instruments has a window to strengthened again this week.

Today, Rupiah is estimating move in the range 14,600 – 14,850 per US Dollar and JCI is expected in the range of 4,975 – 5,080. Stocks to be watch for today are PT Kalbe Farma Tbk (IDX: KLBF), PT United Tractors Tbk (IDX: UNTR), PT Vale Indonesia Tbk (IDX: INCO), PT Astra Agro Lestari Tbk (IDX: AALI), PT Adaro Energy Tbk (IDX: ADRO), PT Bank Central Asia Tbk (IDX: BBCA), and PT Unilever Indonesia Tbk (IDX: UNVR).

-IHS Markit contributed to this briefing

May you have a profitable Week!

Written by Linda Silaen, Please Read Our News to Get More information about Indonesia