JAKARTA (TheInsiderStories) - Good Morning! This week we will sees a full economic calendar including third quarter GDP estimates for the United States (US), Eurozone, Hong Kong SAR, Taiwan and South Korea. In the US, political risk remains high on the agenda ahead of Nov. 3 election day.
Its expects the GDP to have grown at an annualized rate of around 33 percent. But for the fourth quarter to see growth slacken sharply, albeit still robust by historical standards with flash purchasing managers index (PMI) numbers continuing to improve in October.
Similarly, GDP data for the Eurozone, Germany, France, Italy and Spain will inevitably show strong rebounds after the collapse seen in the second quarter, but the focus will likely rest on how the European Central Bank’ governing council assesses downside risks to the outlook at this week’ monetary policy meeting.
In addition, flash PMI survey data showed the region falling back into contraction amid rising COVID infection rates. In Asia, China maps out its next five-year plan and long-term economic strategy.
South Korea and Taiwan are meanwhile expected to have seen GDP expand at quarterly rates of 10.5 percent and 6.8 percent respectively in the third quarter, but the Hong Kong SAR economy is expected to contract at a 7 percent rate. In addition, Bank of Japan is meanwhile expected to downgrade its growth forecasts at its upcoming policy meeting.
In Indonesia, trading day only for two days due to long holidays. For this week, analysts sees there are several sentiments that will be affect financial markets like US stimulus to help the economy get out of the recession due to COVID-19.
According to them, the chances are quite small expecting the stimulus to occur before the US presidential election on Nov. 3, 2020. There was a slight increase in support for US President Donald Trump after the last debate.
However, the innvestors are more hopeful of Joe Biden’ victory. Beside, there are concerns about the threat of a second wave of virus. While, the increase in cases has led to more restrictive policies being implemented in several European countries.
With all various informations, the observes rated Indonesian Rupiah will move in the range of 14,625 - 14,775 in this week after stayed at 14,660 per US dollar on Friday. While, the Jakarta Composite Index is expected to move within the range of 5,051 - 5,135. after strengthening 0.17 to 5.103 positions at the end of last week.
Stocks that can be watched today are property, consumer, mining, bank, retail, also manufacturing. As an examples are PT Astra International Tbk (IDX: ASII), PT Gudan Garam Tbk (IDX: GGRM), PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP), PT Pakuwon Jati Tbk (IDX: PWON), PT Aneka Tambang Tbk, and PT Jasa Marga Tbk (IDX: JSMR).
-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
