US stocks closed in negative territory for the fifth consecutive day o Friday (12/05/23), led by weaker mega cap shares as US Consumer Sentiment (May) data plunged to its lowest point in six months.US stock markets closed in negative territory for the 5th consecutive day on Friday (12/05/23), dragged down by mega caps as US Consumer Sentiment (May) data plunged to its lowest point in 6 months. The upward trend in interest rates set by the US central bank is starting to show its effect on the economic outlook towards recession, but as long as inflation remains persistent, Fed officials will not hesitate to keep raising the interest rate. On the other hand, the US Congressional Budget Office warned that the US will face a “significant risk” if it defaults on several obligations by the first week of June, without securing a deal to raise its debt ceiling. The UK economy remains weak as 1Q23 GDP data showed growth slowed to 0.2% YoY (vs. 0.6% in the previous quarter); although Industrial Production (Mar.) and Manufacturing Production (Mar.) both managed to grow at 0.7% MoM.

Today, Indonesian investors will closely monitor the Trade Balance (Apr) data where surplus is expected to grow to USD 3.38 billion (vs USD 2.91 billion in the previous month). Perhaps this can be a positive sentiment for today’s market, as JCI closed last Friday’s trade with a 1.5-month week low of 6707.76. This closing position has raised suspicion that JCI has the potential to continue weakening until the qualified Support area around 6560-6550 again. NHKSI RESEARCH suggests Wait & See; reduce position if necessary.

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