JAKARTA (TheInsiderStories) – Joe Biden will be inaugurated as the 46th president of the United States (US) on Wednesday with investors waiting to see how his plans for stimulus relief and tackling the pandemic. While, Janet Yellen’ confirmation hearing as the first female treasury secretary in US is set to take place on Tuesday.
After announces the aid relief, now he wants to regulate some of Donald Trump’ policies, including the relationship and economic policy with other partner countries. Beside, in this week we will hear the GDP data for China, flash PMIs for the four largest developed world economies plus a host of monetary policy meetings.
In Europe additional interest comes from the EU Leaders Summit, where the pandemic will be in full focus. Monetary policy events include central bank meetings in Brazil, Canada, China, the Eurozone, Japan, Indonesia and Norway. All are seeking to assess the ongoing impact of the pandemic on both domestic and international economic conditions.
China has so far seen the strongest economic recovery, which is likely to be confirmed with the release of fourth quarter GDP data showing accelerating growth. The strength of the economic rebound is, however, putting pressure on the central bank to rein in its pandemic stimulus, with increasing numbers of analysts expecting a rate hike in the second half of the year. The People’ Bank of China’s meeting will therefore be eagerly watched for clues as to the policy trajectory.
Similarly, in Japan, the central bank will have been pleased to see recent encouraging business survey data, and the flash PMIs are updated for January later in the week. But a tightening of COVID-19 restrictions means the focus will likely remain firmly on building the recovery.
In the US, concerns have likewise risen regarding record COVID-19 case numbers, but tensions have also built ahead of the presidential inauguration ceremony on 20 January. The January flash PMIs will therefore be eyed for the impact of the political unrest and virus on both manufacturing and services activity, as will the jobless data.
The similar situation in Europe, where rising virus cases have led to more aggressive lockdown measures in many countries, notably the United Kingdom (UK) and Germany. The Britain is also showing signs of struggling from its fresh departure from the European Union, with supply chains showing signs of stress.
Flash Purchasing Manager’s Indexes for the Eurozone and UK will therefore be eagerly assessed for early insights into how the region’s major economies have fared at the start of the New Year, with the surveys released hard on the heels of the European Central Bank’ first monetary policy meeting of 2021.
In Indonesia, 81 peoples has beed died due to tremor in West and North Sulawesi has been destroyed 1,150 houses. While, the flood in South Kalimantan and Sumedang in West Java also had make casualties. Other earthquakes also hit Sumatera and Java Island.
On Friday, Indonesian Rupiah strengthened 0.28 percent to 14,020 versus the American dollar and the Jakarta Composite Index (JCI) weakened 0.85 percent to 6,373.41 compared to prior day. The analysts rated, for today, the investors’ eyes will focuses on Chinese economic data.
The world second largest economy are expected to show economic growth picked up to an annual 6.1 percent in the last quarter of 2020, from 4.9 percent in the third quarter. Monthly figures on retail sales and industrial output should show brisk activity as the year ended.
That would be a marked contrast to the US and Europe where the spread of coronavirus has scarred consumer spending. However, they said, there are a lot of good news around vaccines and stimulus priced into equities, but optimism is being challenged by the reality of the tough few months ahead.
The risk across Europe is that lockdowns will be extended, and US cases could lift sharply as the British’ COVID-19 variant spreads. With these various information, they rated, the Rupiah will move in the range and JCI between 6,200 – 6,500. Stocks to be watch for this week are commodity, mining, banking, retail, manufacturing, infrastructure, and pharmacy.
For today, the shares to be watch are PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Wijaya Karya Tbk (IDX: WIKA), PT Semen Indonesia Tbk (IDX: SMGR), PT Kalbe Farma Tbk (IDX: KLBF), PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP), PT Jasa Marga Tbk (IDX: JSMR)m PT Adhi Karya Tbk (IDX: ADHI), PT PP Tbk (IDX: PTPP), and PT United Tractors Tbk (IDX: UNTR).
-IHS Markit Contributed to this story
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Written by Linda Silaen, Please Read Our News to Get More information about Indonesia