The fading of the US inflation effect and a lack of new sentiments affect Wall Street to weaken, with the Nasdaq depreciating by 1% earlier in the week. As for Brainard’s signal that the Fed might slow the pace of FFR hikes and hold the Wall Street pressure. Market movements earlier in the week ahead of the producer-level inflation data that will release on Tuesday local time. Based on a Bloomberg survey, the PPI of US Final Demand Oct. is projected to be at the level of 8.3% YoY (Vs. Sept. 8.5% YoY). On the other hand, an appreciation in energy stocks has ignored a 3% drop in oil prices after OPEC cut its global oil growth projections as economic challenges increased including inflation and high-interest rates.
Wait and See ahead of Trade Balance Data, the JCI remains above the psychological level of 7,000 at the beginning of the week. The Technology sector weakened by 2% or leading the sectoral weakness. Based on a Bloomberg survey, Indonesia’s Trade Balance Oct. is projected to record a surplus of +USD4.5 billion (Vs. Sept. +USD4.9 billion) as exports are projected to grow lower or 13.5% YoY (Vs. Sept. 20.3% YoY), but with Imports growing higher by 24% YoY (Vs. Sept. 22% YoY) in the same period. Amid several sentiments, NHKSI Research projects that JCI today tends to move sideways.
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