The Fed expects a further FFR hike of above 5% in 2023, raising fears of a recession going further and lasting for a long period. Wall Street has consistently moved in the red, with the Nasdaq weakening by 3%. Adding to the global recession fears, BoE and ECB continued their upward trend in interest rates, rising 50 Bps to 3.50% and 2.50%, respectively. The upward trend is done as an effort to control inflation. Market participants also responded negatively towards the Fed’s statement, which says that the lower CPI and PPI indicators have not convinced the US Central Bank to counter price increases.

The Technology sector benefited from the BI 7DRR increase, which was only 25 Bps, but not optimal enough for the Banking NIM. Based on a Bloomberg survey, BI 7DRR in Dec. is projected to rise moderately by 25 Bps to 5.50%; the results will be seen at the BI Governor Meeting on Thursday (22/12) next week. The survey is reflected in yesterday’s stock exchange trading, where the Technology Sector was able to survive and strengthen by 0.9% amid JCI pressure, with the Financial Sector depreciating by 0.8%. Amid the lack of economic data releases today, NHKSI Research projects that the weekend JCI has the opportunity to move bearish or continue in a consolidation.

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