All three Wall Street indexes closed sharply higher by over 1%, with the Dow Jones Industrial Average gaining 1.11% and the Nasdaq leading the way with the biggest gain of 1.48%; as the market awaited US January inflation data later tonight (WIB). Surveys expect the annual inflation rate to fall to 6.2%, from 6.4% in December; and rise to 0.5% from 0.1% (revised from -0.1%) on the monthly level. Core inflation (which excludes fuel prices) is expected to rise 0.4% MoM and 5.5% YoY. Japan and Eurozone await the release of 4Q22 GDP data, where Japan expects to see an increase of 2% YoY from 0.8%; while Eurozone projects their 4Q22 GDP to at least be equal to the previous level of 1.9% YoY. The US Dollar weakened slightly in an attempt to consolidate after its rise to a 6-week high against the Japanese Yen amid expectations that the Federal Reserve will keep monetary policy tight for longer. At the same time, the next head of the BOJ (Bank of Japan) might not necessarily signal an imminent change in course from the negative rate policy.
JCI managed to recover to 6900.14, an increase of 0.28%, heading back above the MA10 Support, which is an important gesture to maintain this short-term uptrend. This JCI gain was quite an anomaly compared to most other Asia-Pacific stocks, followed by a Foreign Net Sell of IDR409.71 billion; kicking off a week full of economic data releases worldwide. Singapore reported 2022 GDP growth at 3.6%, a significant decrease from 8.9% in 2021. NHKSI RESEARCH is quite optimistic that bullish could still prevail today, with JCI testing important Resistance in the range of 6955-6965. However, it is reasonable that high volatility still exists in the market. The confidence of market participants needs to be confirmed by the US CPI economic data, which is crucial in determining the direction of the Fed’s interest rate policy ahead.
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