JAKARTA (TheInsiderStories) – Good Morning! The week ahead we will sees the inflation data in Indonesia, Thailand, Taiwan, and the Philippines. Other highlights include Hong Kong SAR retail sales, trade figures in Australia, China, South Korea and Malaysia.
Then, Caixin and NBS PMI releases are joined by Japan, South Korea and Australia updating their GDP numbers, with the latter also setting monetary policy, for which further easing is anticipated.
In addition, the Purchasing Managers Index (PMI business) surveys provide the first major insights into global economic trends in May, with clues being sought as to not only the depth of the downturn but also the speed with which economies can recover from the COVID-19 pandemic.
The provisional PMI data hint that the global downturn may have already peaked back in April, with rates of decline having eased markedly in the United States (US), Eurozone, Japan and Britain in May. If lockdowns are lifted further in coming months, as planned, a return to growth looks possible for many economies as we head into the third quarter.
With markets showing signs of reduced pessimism on the economic outlook, analysts will be hoping that the final global PMIs will confirm an easing from April’ unprecedented rate of economic contraction. China’ PMI data will prove especially interesting as a bellwether for other economies, as the country has relaxed many of its COVID-19 restrictions earlier than other countries.
In the US, PMI and ISM surveys are followed by the monthly non-farm payrolls report, which is expected to show further widespread job losses and another increase in the unemployment rate beyond the current post-war record of 14.7 percent.
In Europe, the PMI releases are swiftly followed by the European Central Bank’ meeting, for which we see a high likelihood of further stimulus being announced. Eurozones area unemployment and retail sales data are also updated, as are United Kingdom mortgage approvals.
The Organization of the Petroleum Exporting Countries and its allies (OPEC+) will plans to extend the period of production cuts by one to three months at a meeting to be held on June 4, earlier than the original schedule of June 9. Last April the oil cartel has reduced the production amid a slump in oil consumption due to the corona virus pandemic. Pruning then begins in May 2020.
Last week, Thailand lawmakers agreed to provide a stimulus of 1.9 trillion Baht (US$59.82 billion) to support the economic growth amid the epidemic. The source of stimulus funding came from government loans worth 1 trillion Baht, as well as central bank policy in the form of soft loans and corporate bond issuance.
Around 600 billion baht will be used to support work in the public health sector and other assistance. The rest is to rebuild the economy and create jobs. Its hoped that in early June 2020 there will be another meeting to discuss the stimulus policy before it is issued in the form of a law.
On Friday, Indonesian Rupiah strengthened 0.71 percent to the level of 14,610 a US dollar and the Jakart Composite Index closed at 4,753.61 with a gain of 0.79 percent. No important agenda and trading today due to holiday.
US$: 31.76 Bath
-IHS Markit contributed to these briefing
May you have a profitable Week!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia