The United States (US) presidential elections—described by some commentators as perhaps the most important in modern history—take centre stage in a week - Photo: Special

JAKARTA (TheInsiderStories) – The presidential elections in the United States (US)—described by some commentators as perhaps the most important in modern history—take centre stage in a week. There are also sees some key economic data releases which will give insights into how the global economy is faring amid second waves of COVID-19 infections.

Monetary policy meetings also take place in the US, United Kingdom, Australia and Malaysia. The Federal Open Meeting Committee concludes its next policy meeting on Nov. 5, just two days after the presidential election.

The monthly employment report is accompanied by PMI data for both manufacturing and services. Flash surveys showed the US economy gaining underlying growth momentum, linked to the further loosening of COVID-19 containment measures during the month.

However, with virus numbers reaching new highs, the survey also showed some weakness in consumer markets, and that the job market recovery cooled, hinting at softer non-farm payroll gains. In Europe, policymakers at the Bank of England meet amid signs of the policymakers’ growing appetite for more stimulus, including further asset purchases, especially following news of economic recoveries faltering in the UK and Eurozone.

The latter even saw a renewed contraction as COVID-19 containment measures were tightened again. Final PMI data for the region will therefore be eagerly awaited, providing more detail on national and sector trends.

In Asia, analysts will await PMI data surveys to assess the recovery momentum in mainland China especially, but also to see if signs of a more widespread recovery of manufacturing in the region have persisted, linked in turn to reviving global trade flows. Meanwhile, expectations have risen for the central banks of both Australia and Malaysia to add more stimulus.

In Indonesia, the statistics bureau will report on the development of inflation and tourism during October 2020. Last month, the country posted 0.02 percent month-to-month inflation in October with the Consumer Price Index of 138.40

Then, Bank Indonesia will announce the third quarter’ gross domestic product on Oct. 5 and the following day released the foreign exchange reserve position during of last month. This week, there is also a schedule for the issuance of state bond by the ministry of finance.

Today, the Financial Services Authority will provide the latest information on the Indonesia’ financial industry conditions. While, President Joko Widodo will give a direction to all the ministers in the cabinet plenary session lead by him.

After a long holiday, the transactions on the financial markets are back to being active today. On Tuesday, Indonesian Rupiah was closed up 0.17 percent to 14,625 per US dollar and the Jakarta Composite Index (JCI) was corrected 0.31 percent to 5,128.25 compared to the previous day.

According to analysts, if the US election goes well, the chance for both of them to strengthen is very open. This week the local currency is expected to strengthen in the range of 14,550 – 14,600 per US dollar and JCI is in the range.

They rated, stocks that can be watched in this week are consumer, banking, telecommunication, retail, manufacturing, and commodity sectors. For today,PT Gudang Garam Tbk (IDX: GGRM), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Astra Agro Lestari Tbk (IDX: AALI), PT London Sumatra Plantation Tbk (IDX: LSIP), PT Vale Indonesia Tbk (IDX: INCO), and PT Aneka Tambang Tbk (IDX: ANTM) stocks can be monitored.

-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