JAKARTA (TheInsiderStories) – This week we will looks The International Monetary Fund (IMF) and World Bank spring meeting, the Federal Reserves (Fed) and European Central Bank (ECB) release minutes from their last meetings. Managing director of IMF, Kristalina Georgieva, has indicated that the world economic outlook will see an upward revision to January’ forecast for 5.5 percent in this year.
Aside from the updated economic outlook, Group of 20 finance ministers will meet on Wednesday to discuss debt relief initiatives. Some key updates to trade, industrial production and inflation also dominate the week alongside interest rate decisions at central banks in Australia, India and Poland.
The investors also will be watching to see whether Congress will pass President Joe Biden’ massive infrastructure plans amounted to US$2 trillion. While, labor department reported that in the United States (US) economy added 916,000 jobs in March, the most in seven months.
Chairman of Fed, Jerome Powell, played down concerns about inflation after March meeting and the ECB is to release its latest meeting minutes on Thursday. President of ECB, Christine Lagarde, has said investors could test the bank’ willingness to rein in rising borrowing costs “as much as they want”.
Today, US treasury secretary, Janet Yellen, is to speak at one webinar to discuss the global economic recovery from the pandemic. The Institute of Supply Management to release data on service sector activity, on Thursday’ weekly data on initial jobless claims along with figures on producer price inflation on Friday.
Policy is expected to remain on hold when the Reserves Bank of Australia and Reserves Bank of India meet to set interest rates for Australia and India respectively. Both central banks are keen to ensure policy remains accommodative, with India in particular concerned about the economic impact from further waves of infections.
In Europe, France’ finance minister, Bruno Le Maire, announced the public deficit to reach 9 percent of gross domestic product (GDP) in 2021, up from a previous forecast of 8.5 percent as the country enters its third national lockdown. The change followed a downward revision of France’ growth forecast from 6 to 5 percent in 2021.
In Asia, China’ economy also comes under the spotlight with updates to its service sector Purchasing Manager’ Index (PMI) and inflation data. PMI data from IHS Markit and the ISM will give fresh insights in the performance of the service sector.
Then, Japan may need to compile a supplementary budget for the current fiscal year to combat the economic blow from the pandemic. Last month, the parliament passed a record JPY106.6 trillion (US$964.01 billion) budget for the fiscal year that began in April, which features a 5-trillion-yen fund set aside for emergency spending related to the pandemic.
In Indonesia, big flood and landslide disaster has hampered East Nusa Tenggara since end of last week. Dozens of people has been died and hundreds have been evacuated. The mitigation agency has informed that the extreme weather will hit the country during this week.
End of last week, Indonesian Rupiah closed down by 0.003 percent to the level of 14.525 per US Dollar and the Jakarta Composite Index (JCI) edged up 0.004 percent to position 6,011.46 compared to the previous day. The analysts rated, the pressure on both of them was the impact of the increase in US treasury yields which reached 1.77 percent, and was one of its record highs.
In addition, the risk of taper tantrums and the plan of United States President Joe Bidden to prepare infrastructure stimulus with a jumbo value. While, data on the jobless claims fell and indicated that there was an improvement in the US economy.
With these various information, the Rupiah its expecting move in the range 14,450 – 14,550 and the JCI between 5,850 – 6,100. Stocks to be watch for today are PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Mandiri Tbk (IDX: BMRI), PT Indofood Sukses Makmur Tbk (IDX: INDF), PT Bukit Asam Tbk (IDX: PTBA), and PT Astra International Tbk (IDX: ASII).
May you have a profitable Week!
Written by Linda Silaen and Editorial Team, Please Read Our News to Get More information about Indonesia