The Dow Jones index rallied 368 points/1.1% as investors assessed economic data and earnings report ahead of a run of FOMC Meeting announcements, closing January with a total gain of 2%. US Consumer Confidence fell to a reading of 107.1 (vs. forecast & previous: 109), signaling consumers grew less upbeat about job prospects and expected business conditions to softer in the near term as inflation expectations for the next 12 months climbed to 6.8% from 6.6 last month. US 4Q22 Employment Cost Index settled at 1% (vs. 1.1% forecast, vs. 1.2% previous), showed the weakest growth in a year, even in a tight labor market. European stocks also notched their biggest January percentage gain since 2015. Eurozone 4Q22 GDP came in at 0.1% QoQ (vs. -0.1% forecast, vs. 0.3% previous); and rose 1.9% on an annual basis (vs. 2.2% forecast, vs. 2.3% previous), indicating slight economic growth while not completely escaping the threat of contraction this year. Chinese Composite PMI (Jan.) increased to a reading of 52.9, vs. previous 42.6, which indicates a high optimism over future business expansion in both manufacturing and services sectors.
In contrast to US & European exchanges, JCI moved further away from the critical resistance level of 6900 by dropping 33 points to 6839; with the foreign recorded net sell of IDR671.82 billion & Rupiah traded at IDR14992/USD, approaching the psychological limit of 15000. BMRI’s FY22 earnings report, which came out above expectations, surpassing IDR 41.2 trillion or an increase of 46% on an annual basis, failed to bring any positive sentiment to the market. Considering JCI’s current position, which is firmly hanging on MA10 & MA50 Support, NHKSI RESEARCH suggests not rushing into speculative positions but rather watching the January inflation due today and how the market’s response to it.
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