• The Dow Jones closed in positive territory on Tuesday (12/12/23) even as the S&P500 touched a fresh high since January 2022, with the Nasdaq leading the gains by 0.7% thanks to a glide in inflation which raised hopes of an interest rate cut early next year, ahead of the monetary policy decision being deliberated by the Federal Reserve scheduled for release on Thursday morning at 02.00 WIB.
• The Labor Department’s Consumer Price Index (CPI) unexpectedly inched higher on a monthly basis in November, but edged lower on an annual basis, stoking concerns that inflation is taking longer to return to the Fed’s 2% target than many had hoped and raising the possibility that the central bank will keep policy rates in restrictive territory longer. Annual headline consumer price growth edged down to 3.1% last month, decelerating from 3.2% in October, according to data from the Bureau of Labor Statistics on Tuesday. Month-on-month, the reading inched up by 0.1%. Economists had forecast the measures at 3.1% and 0.0%, respectively. The closely-watched “core” figure, which strips out volatile items like food and energy, rose by 4.0% annually, in line with the prior month. On a monthly basis, underlying price gains came in at 0.3%, a marginally faster pace than 0.2% in October. Both matched estimates.
• The Federal Open Markets Committee (FOMC) gathered for its two-day monetary policy meeting, which is expected to culminate in a decision to leave the Fed funds target rate at 5.25%-5.50%. The Fed is also expected to release its Summary Economic Projections and dot plot, which should shed light on the central bank’s path forward. Not surprisingly, treasury yields edged lower after the core CPI number landed largely in line with expectations, bolstering views that the Fed will hold its key policy rate steady on Wednesday. Benchmark 10-year notes last rose 8/32 in price to yield 4.2082%, from 4.239% late on Monday. The 30-year bond last rose 9/32 in price to yield 4.3151%, from 4.33% late on Monday. The dollar lost ground against a basket of world currencies in anticipation of the Fed’s updated economic and interest rate projections expected on Wednesday. The dollar index fell 0.26%, with the euro up 0.33% to USD1.0796.
• COMMODITIES: Crude Oil WTI Futures, the U.S. benchmark, traded at USD68.83 a barrel following the report after settling down 3.8% at USD68.61 a barrel to remain on track for its longest weekly losing streak since 2018. U.S. crude inventories fell 2.3M barrels for the week ended Dec. 8, compared with a build of 549,000 barrels reported by the API for the previous week. Economists were expecting an decline of about 1.5M barrels. The larger-than-expected draw comes as concerns about growing non-OPEC supply offsetting recent output-cut pledges by OPEC and its allies, OPEC+ amid doubts about whether the cuts will be extended. The API data also showed that gasoline inventories increased by 5.8M barrels last week, while distillate stocks decreased by 300,000 barrels. The official government inventory report due Wednesday is expected to show weekly U.S. crude supplies decreased by about 1.5M barrels last week. Meanwhile, Gold reversed its gains following the inflation data, and was last slightly lower. Spot gold dropped 0.1% to USD1,978.91 an ounce.
• JCI closed higher yesterday back above 7100 level, still orderly above MA10 as Uptrend platform. As such, NHKSI RESEARCH assumes this bullish trend is still intact and therefore advises investors/traders to keep a close eye on trading opportunities in the market. JCI Year End Target still has the possibility to be extended to 7350-7370, in line with JCI All Time High point.
• ASSA: Intensively Developing CargoShare Business
• EMTK: Holding a MESOP of IDR38.62 Billion
• BIRD: Capex Jumps to IDR2 Trillion in 2024
Domestic & Global News
• TikTok and Tokopedia Collaboration, Minister of Trade: 4 Months Trial
• UN Calls for Immediate Ceasefire in Gaza, Biden Warns Israel Is Losing Support
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