Today’s Outlook:
• US stocks lost their upward momentum after the Inflation (Aug.) announcement came in at 3.7% yoy, slightly higher than expectations of 3.6%; as energy prices soared. On the other hand, Core Inflation which excludes prices of volatile goods such as food and fuel, rose 4.3% as expected and is still on track to reach the Fed’s target of 2%. Continuing today, PPI or Producer Price Index readings, as well as Retail Sales & Initial Jobless Claims will also be the focus of the market; as the Federal Reserve meeting to determine interest rates next week where a 97% chance of the Fed Funds Rate will be held at its current level of 5.25%-5.50%, according to CME FedWatch.
• European Markets: European stocks closed in negative territory as investors took note of their economic data releases, including: UK GDP in July plunged to 0% yoy or even entered recession on a monthly basis at -0.5% mom, as well as their Industrial & Manufacturing Production (July) which weakened further from the previous month; coupled with the overall Eurozone Industrial Production (July) actually falling below expectations, leaving a lackluster market sentiment, especially ahead of the ECB meeting later tonight around 7.15pm GMT which will determine interest rates (survey: fixed at 4.25%).
• Asian markets: Japan has released Core Machinary Orders (July) this morning, which failed to meet expectations; later in the day Industrial Production (July) may be more in the spotlight for market participants.
• Commodities: Oil prices continued to creep higher on Wednesday (13/09/23) nearing their highest level in November 2022; triggered by growing concerns of inventory shortages plus bullish outlook of global demand based on the latest monthly report from OPEC. However, an unexpected increase in US oil inventories by 3.9 million barrels from the expected minus 1.9 million, caused the movement of Oil prices to be somewhat restrained and slightly weakened both Brent and WTI. On the other hand, Gold prices were slightly lower, moving at a 2-week low after the recent US CPI data release helped boost the US Dollar.
• JCI’s closing position yesterday was held at a number of important Supports that keep this short term uptrend intact. However, a significant buying push is needed to break through the 6970 Resistance again to somewhat open the way towards the 7000 psychological level. Indeed, yesterday’s foreign net sell of IDR 617.83 billion (RG market) further drained the coffers of Indonesian stocks this week to Foreign Net Sell of IDR 2.9 trillion. NHKSI RESEARCH suggests that investors/traders refrain from averaging up too much now before the JCI steadily moves upwards.
Company News
• MEDC : Guarantees Subsidiary’s Oil Transaction
• LUCY : Open Its First Outlet in Medan City
• SMDR : Added 8 New Vessels
Domestic & Global News
• Expensive Livestock Feed: House of Representatives Ask to Open Corn Imports, Minister of Agriculture to Import Wheat
• Oil Dips as Surprise US Crude Stockbuild Faces Supply Cuts
Download full report HERE.
