US inflation in March was announced at 1.2% MoM (8.5% YoY) price in, or in line with market expectations, pushing the US stock market to strengthen at the opening of trading yesterday. Investors believe that US inflation in March has reached its peak before speculations of a 50 bps increase in the Fed Funds Rate in May, June and July. Meanwhile, investors are also waiting for the financial performance release season which will start on Wednesday (13/04) for a number of large banks. The wait and-see attitude resulted in the US stock market closing lower.

Yesterday, JCI opened higher to touch 7,248, which then briefly weakened to a level of 7,147, as investors waited for the release of March US inflation data which was projected to rise. JCI closed up 11 points (+0.2%) to 7,214, in line with foreign investors’ net buys of IDR 1.5 trillion. Continuing yesterday’s gains, NHKSI Research projects that the JCI will rebound today, with a range of 7,150-7,355.

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