The Fed Pivot is too early, and the US labor market becomes more solid. US labor data, JOLTS Job Openings rose 437K (4.3% MoM) to 10.7 million in September, as job openings in the accommodation and Food Services industries are high. Even as the Fed is on track for aggressive rate hikes, the solid labor market is lowering the hopes of looser policy by The Fed at the FOMC Meeting next December. Moreover, Wall Street closed weak, with the DJIA falling by 80 points. The Fed Pivot refers to policies with reverse direction quickly, such as the Hawkish FFR that hikes +75Bps in November and becomes Dovish in December, or the FFR is up by +50Bps. On the other hand, high-interest rates put pressure on the US manufacturing activity for the October period. This became the slowest pace of expansion in 2.5 years.
Indonesia’s Manufacturing expansion slowed down. The decline in Indonesian-made goods, along with the economic pressures from several major trading partners, suppressed Indonesia’s Manufacturing PMI for the October period, the expansion was recorded at the level of 51.8 points (Vs. Sept. 53.7 points). Furthermore, the JCI is approaching the psychological level of 7,000 after having a breakthrough at the level of 7,100 in the beginning. The Energy sector weakened by 3% or led to sectoral weakness, as ICE Newcastle’s benchmark on coal price fell to USD359/MT or the lowest level within the past three months and remained away from the psychological level of USD400/MT. Amid a number of sentiments, NHKSI Research projects JCI today to move bearish on short-term consolidation.
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