US April inflation 8.3% YoY (Vs. Cons. 8.1% YoY) is still high, but lower than March’s 8.5% YoY. This inflation data did not succeed in reducing investors’ concerns over the discourse of a 50 bps FFR increase in June. Wall Street stock markets closed lower, with Nasdaq down 3.18%. The moderate rate of inflation makes investors believe that US inflation has reached its peak in March 2022. This can be seen from the US April inflation at 0.3% MoM on a monthly basis, or far below the March period of 1.2% MoM.

JCI briefly touched a high level of 6,900, before finally closing lower by 3.5 points to 6,816. In addition to rising consumption levels, investors are interested in noncyclical consumer stocks, which are relatively resilient to high inflation rates. Yesterday, the non-cyclical consumer sector rose by more than 3%, surpassing basic materials and consumer cyclical which each rose by around 1.3%. Meanwhile, the rupiah exchange rate continued to depreciate to the level of IDR 14,558/USD, as the Indonesian government securities market remained depressed. NHKSI Research projects that the JCI will move downward in the range of 6,700-6,900.

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