1-Year inflation expectations drop to 5%, Dow Jones gains more than 400 points. The data show the U. of Mich. 1Y Inflation Preliminary Aug. is down to 5.0% (Vs. Jul. 5.2%). This survey becomes even more important after the inflation expectation component is used as the basis for the Fed to determine the FFR rate. Wall Street’s appreciation, which moved in the green zone, responded positively to consumer sentiment that exceeded expectations. Data U. of Mich. Sentiment Preliminary Aug. is at 55.1 (Vs. Surv. 52.5).
JCI was held back at the psychological level of 7,100 at the weekend. Meanwhile, Technology fell by 2% or led the sectoral decline. It was followed by Transportation & Logistics and Finance, down 0.9% and 0.7%, respectively. The JCI’s pressure contrasted with the Rupiah which appreciated near the level of IDR14,600/USD last Friday. JCI was consistently in the red zone on Friday, making us project the JCI to move Consolidating/ Pullback with Support: 7,110-7,075 / 7,020-7,000 and Resistance: 7,175 -7,181 / 7,250 / 7,350.
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