JAKARTA (TheInsiderStories) - Good Morning! A full economic calendar for the week kicks off with worldwide PMI surveys and closes with the monthly United States (US) non-farm payroll report. Sandwiched between are policy decisions from Europe, the United Kingdom (UK), Australia and India.
In Indonesia, start with the inauguration of state-owned sharia bank, PT Bank Syariah Indonesia Tbk (IDX: BRIS) by President Joko Widodo, inflation data announcement by Statistic Indonesia bureau, and other economic data and policies by the government and the central bank.
The PMI surveys will be closely watched, having shown escalating risks of double dip recessions in the eurozone and UK as tightening COVID-19 restrictions constrain economies again, albeit to markedly lesser extents than in early 2020. Global growth has shown encouraging resilience though, thanks to sustained strong expansions in many other economies, notably including the US and China.
The weak spot remains consumer services, and in particular cross-border services, such as travel and tourism. For US, the economic insights into the performance of the economy from the PMIs are accompanied by the official labour market data.
Analysts are anticipating a renewed rise in non-farm payrolls after the slide into decline recorded in December, but the jobs numbers are expected to remain subdued compared to prior months in the recovery. While, Republicans press President Joe Bidden’ to slices the fiscal stimulus from US$1.9 trillion to $600 million.
In Europe, the European Central Bank has an agenda to releases monetary policy statement on Tuesday. Then, Bank of England is expected to follow the footsteps of the Federal Reserves, stressing the need to policy to remain accommodative long into the future as the pandemic poses ongoing risks.
In the UK, Brexit disruptions have added to the country’ third lockdown woes, driving output sharply lower in January. On Wednesday, the consumer price index of Eurozone out. Similarly in Asia, the reserve banks of India and Australia are likely to lean towards dovish stances.
Although both economies have shown strong rebounds since the initial impact of the pandemic, policymakers remain worried about the potential for renewed weakness amid further waves of the virus either at home or abroad.
Supply delays have also muddied the water for policymakers somewhat, meaning recent PMI data will also be eyed for indications that supply constraints and associated spike in prices for many goods will have started to ease. On Thursday, Australia to announces the retail sales data in December after printed at -4.2 percent in November.
In Myanmar, Aung San Suu Kyi, leader of the National League for Democracy party that lead the country, has been arrested by the military. The arrests came amid tensions between the civilian government and the military, sparking fears of a coup.
At the end of last week Indonesian Rupiah strengthened 0.34 percent to 14,030 per US Dollar and the Jakarta Composite Index (JCO) fell sharply 1.96 percent to 5,862.35 compared to the previous day. The stock index has eroded 1.95 percent since the beginning of this year.
This week the local currency h is expected to move between 13,950 - 14,100 and JCI in the range of 5,800 - 6,000. Stocks that can be watched this week are the banking, mining, retail, commodities, manufacturing, and infrastructure sectors.
Today, you can monitor BRIS, PT Astra Agro Lestari Tbk (IDX: AALI), PT London Sumatra Plantation Tbk (IDX: LSIP), PT Mayora Indah Tbk (IDX: MYOR), PT AKR Corporindo Tbk (IDX: AKRA), PT Indo Tambangraya Megah Tbk (IDX: ITMG), PT Vale Indonesia Tbk (IDX: INCO), and PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP) stocks.
-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
