Today’s Outlook:
• Wall Street indexes closed in positive territory on Tuesday (10/10/12), to notch their third straight day of gains, after dovish comments from US Federal Reserve officials pushed Treasury yields lower as investors cautiously monitored developments in the Middle East. Atlanta Fed President Raphael Bostic said the US central bank does not need to raise interest rates any further, and that he sees no recession ahead. The 10-year Treasury yield came off its 16-year peak, and was tracking for its steepest single-day drop since August, as trading resumed in the US bond market which had been closed for a holiday on Monday. Although the Fed’s dovish comments were helping stocks and investors were being optimistic about the Middle East conflict, yet view could change if for example the fighting spread to other countries in the region. More dovish comments from Fed’s officials, Minneapolis Fed President Neel Kashkari, believes the US economy is on a soft landing path, where inflation is on a path back to the Fed’s target of 2%, but the unemployment rate is not rising sharply. Traders put the chance of interest rates remaining unchanged in November and December at around 86% and 73%, respectively, according to CME’s FedWatch survey. Later in the week, investor focus will turn to inflation data, including September producer and consumer prices as well as the Fed’s September meeting minutes; while Friday is when third-quarter earnings season kicks off in earnest. As for the US PPI (Sept), it will be announced later tonight at around 1930 GMT where estimates are rolling in at around 1.6% yoy, but it’s the monthly growth that gets the spotlight as it is expected to ease to 0.3% mom in Sept, from 0.7% in the previous month.
• Indonesia reported Retail Sales (Sept) growth slowed to 1.1% yoy; while Motorcycle sales (Sept) also fell -0.9% yoy compared to the previous period, which was slightly higher at 1.8%.
• EUROPEAN MARKETS: Germany will release CPI (Sept) figures, which are expected to ease to 4.5% yoy from 6.1% the previous month. Later today, the global market will find out if China’s economy is picking up, with New Loans growth predicted to jump to CNY 2500 billion, up from the previous period’s CNY 1360 billion.
• JCI’s closing position yesterday was by far the best over the past week, it was detected that there has been an attempt to break the 10-day Moving Average Resistance, followed by a test of MA50 & MA20 Resistance to be completely free from the threat of further collapse below 6800 level. NHKSI RESEARCH advises investors/traders to AVERAGE UP once JCI is firmly above 6950 (Closing position).
Company News
• JPFA : Exporting Eggs to Brunei Darussalam
• NICL : IDR 548.4 Million Spent on Exploration in September 2023
• BRPT: Holds idA+ Rating
Domestic & Global News
• CPO Exchange Launches October 13, Indonesia Can Set World Reference Price?
• IMF Cuts Global Economic Outlook to 2.9 Percent in 2024, Inflation Looms
Download full report HERE.
