US April Producer Price Index is at 11% YoY (Vs. Prev. 11.5%), surpassing the consensus of 10.7%, and could break the opinion of the end of the highest inflation on last March. Currently, investors are more focused on concerns of prolonged high inflation. Wall Street stock markets closed mixed yesterday, amid the end of the company’s financial performance release season. Meanwhile, the US Senate has confirmed Powell for a second term as Fed Chair, indicating the Fed’s continued Hawkish policy in battling the highest US inflation in 40 years.

JCI declined by more than 3% to a level below 6,600, amidst the relatively sloping pressure on the Indonesian government securities market. The technology sector (- 4.6%) and basic materials (-3.3%) led the declines in yesterday’s trading. Foreign investors recorded a net sell of IDR 721 billion, amid the depreciation of the rupiah, which yesterday touched IDR 14,600/USD. The positive sentiment of retail sales in March has made NHKSI Research see the potential for a rebound in the JCI, which is projected to move in the range of 6,500-6,700.

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