US Unemployment Rate Sept. down to 3.50% level (Vs. Aug. 3.7%); indicates the economy remains resilient, or is ready to face a further increase in FFR. Investors responded negatively to a potential increase in FFR of +75 bps four times in a row, bringing FFR to 4% in early November. The trend of high interest rates, persisting for a long time, puts the US economy at risk of recession. The Nasdaq led Wall Street’s decline, or fell nearly 4%, as well as making the UST10Y yield rise to near the 4% level. A solid US labor market, also supported by Change in NonFarm Payrolls Sept data. increased by 263K, exceeding expectations of only 255K.
One of the capital instruments facing a recession, Indonesia’s Cadev fell 1% MoM. JCI depreciated 50 points to near the psychological level of 7,000, as nine of the eleven sectors closed lower at the weekend. Meanwhile, Infrastructure and Transportation & Logistics led the sectoral decline, or weakened by more than 1%. BI’s ability to maintain monetary stability or intervene in the foreign exchange market has decreased. Data Cadev Indonesia Sept. fell USD1.4Bn to USD130.8Bn, in line with BI’s efforts to keep the Rupiah depreciated by more than 2% MoM last month. In the midst of waiting for the release of Indonesia’s Consumer Confidence Index data, Sept. today, NHKSI Research projects JCI to move Consolidate – Bearish with Support: 7,000 / 6,970-6,930/ 6,840-6,850 and Resistance: 7,080/ 7,140-7,150 / 7,200-7,225.
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