All three major US indexes declined significantly at the close (10/02), amid growing concerns about a more aggressive monetary policy. The release of US inflation data was was once again higher than expected at 7.5%; the highest since 1982. Investors also reacted negatively after a Federal Reserve official, James Bullard, expressed that he sees a 100bps rate hike before July.

From the domestic market, the JCI contracted by 0.16% from its highest closing level; although foreign investors recorded a net buy of IDR 1.7 trillion. Market participants will be watching the impact of high US inflation, with the yield on the 10-year US bond having already breached the 2% level. Towards the end of the week, the benchmark index is expected to move mixed and tend to weaken in the range of 6,780 – 6,870.

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