US stock price indexes closed last week with a loss below 1%; the Nasdaq led the way with a loss of 0.61% as selling pressure happened on large-cap stocks after Treasury bond yields surged to a 1-month high triggered by a lackluster 30-year Treasury bond auction. However, there was a rally in energy stocks driven by Russia’s decision to cut its oil products as revenge for Western economic sanctions. As reported by Refinitiv, so far, more than half of the S&P500 companies have released their 4Q22 earnings reports, and 69% of them have managed to post performance above expectations. US consumer sentiment will improve in Feb. (mom), but households expect inflation to remain high for the next 12 months; as revealed by preliminary readings from the University of Michigan. Market participants will keep a close eye on the US inflation announcement on Tuesday. Meanwhile, from the eastern side of the world, China’s inflation rate rose to 2.1% (Jan.) from Dec.’s 1.8%, though still slightly lower than the 2.2% forecast as the economy starts to roll over due to the zero-covid policy that has ended.

JCI failed to maintain its position at the 6900 level, but the 17-point drop last Friday to the 6880.3 level managed to attract IDR 754 billion in foreign funds. Market participants will evaluate several important domestic economic data & monetary decisions, such as Trade Balance (Jan.) on Wednesday, which is expected to grow to USD 4.01 billion (vs. previous USD 3.89 billion), followed by Bank Indonesia’s interest rate decision on Thursday. The Rupiah exchange rate position will also draw attention as the USD continues strengthening to IDR 15202. Overall, JCI is still trying to maintain this short-term bullishness by rebounding quite far from last Friday’s low around MA20 & MA50 Support in the range of: 6845-6815. However, the Closing position remains under the first MA10 / 6890 Resistance. These Support & Resistance levels will be the focus of attention today regarding which direction the JCI will move soon. NHKSI RESEARCH expects the market to be volatile. Therefore advises traders/investors to Hold all positions and not rashly Average Up too much first while waiting for JCI to at least managed to perch above MA10 and 6900 level.

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