• Wall Street’s main indexes closed in negative territory on Thursday (12/10/23) with Nasdaq leading the way down 0.63%, after surging US Treasury yields in following US Inflation data (Sept) that was released stronger than expected. Surging shelter costs pushed US consumer price index higher last month, to 3/7% yoy, slightly higher than tne 3/6% forecast; while the Core Inflation, excluding prices of volatile goods such as food and energy, was able to ease to 4.1% yoy, which was the lowest in two years. The benchmark 10-year US Treasury yield climbed further to its highest point after the auction ended, as high as 4.728% yield, which is the highest-level since Friday after falling for the last two days. Meanwhile, the 2-year US Treasury yield was pushed above 5%. The rising yields put selling pressure on the interest rate sensitive sectors of Utilities and Real Estate. Boston Fed President Susan Collins commented that while the odds of the economy escaping a recession have grown, it is possible the central bank is not done with interest rate hikes aimed at bringing inflation back to its target. The labor market, meanwhile, continued to surprise to upside as the initial jobless claims were short of the expectations (actual: 209k, vs. forecast: 210k). Although the above economic data shows that the US economy is still proving resilient, the odds for interest rate hike next month remain low at 12%, according to Investing.com’s Fed Rate Monitor Tool. Investors were also carefully monitoring developments in the Middle East. Gaza moved closer to a humanitarian catastrophe as the death toll rose and vital supplies ran low, while Israel massed tanks on the enclave’s border ahead of an anticipated ground invasion amid international calls for restraint. Q3 earnings will also grab the attention of investors as major banks such as JPMorgan Chase, Wells Fargo, and Citigroup will release their results before the market opens.
• EUROPE MARKETS: UK GDP for August rose as expected to 0.5% yoy from 0.3% in July, on a monthly basis they also dodged -0.6% deflation in the previous month to 0.2% mom. Unfortunately, UK Industrial & Manufacturing Production is still immersed in negative growth territory, worse than expected; although the decline has started to slow from the previous month. No wonder the UK Trade Balance for August posted a larger deficit (than expected and the previous month) at GBP15.95 billion. In the afternoon, the world will monitor Eurozone Industrial Production for August, which this time the annual decline is predicted to worsen.
• ASIA MARKETS: This morning, South Korea reported Unemployment Rate (Sept.) which increased again to 2.6%. Meanwhile, foreign investment in Japanese stocks is suspected to have increased significantly to JPY1436.1 billion, up 20x from the previous period. As for this morning, we immediately look forward to China’s CPI figures (Sept.) which will again be highlighted whether the Chinese economy is able to be more vibrant since the Zero-Covid policy was ended. Therefore, it is important to pay attention to China’s Trade Balance (Sept.) figures which will explain the movement map of the world’s second largest economy’s Exports & Imports that are crucial for global economic growth.
• JCI: for the first time this week foreign investors were seen to begin a Net Buy of IDR 552.32 billion, bringing their weekly Net Sell position down to IDR 543.74 billion; while JCI hit critical Resistance for the third time this week and instead closed with a Shooting Star-like candle. Considering the probability of the Fed still having to raise interest rates one more time before the end of 2023 and the Rupiah not strengthening from its current level above IDR 15700/USD, it is reasonable that Indonesian capital market investors/traders are not very optimistic that the 7000 level will be broken easily. NHKSI RESEARCH suggests refraining from positioning too much at the end of this week, although Average Up can be done gradually if the Resistance of your portfolio stocks starts to be broken one by one.
• UNTR : Business Entities Spend USD1.22 Million in Exploration Funds
• META : Ready to Acquire Pemalang-Batang Toll Road from Waskita
• ITMG : Continued Drilling in Kutai
Domestic & Global News
• Indonesia Imports Most Products from China, Government Prepares This Rule
• US Says Iran Cannot Access Its USD 6 Billion in Qatar Any Time Soon
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