US inflation slumped again, and technology stocks continued to rally, with the Nasdaq appreciating by 1% or leading Wall Street’s gains. After consumer-level inflation is inclined, producer-level inflation also becomes lower. US PPI Headline Oct. was at the level of 8.0% YoY (Vs. Sept. 8.4% YoY), in line with the normalization of gas prices that went down to 10% MoM and the price of several food commodities. Furthermore, the low CPI and PPI made the market’s speculations dominate on the increase in Dec. FFR of +50Bps (Vs. +75Bps), based on the Fed Watch CME survey. For the record, energy and food prices tend to be very volatile amid rising crude oil prices. Brent and WTI oil prices rose by 1% on a daily basis due to the disruption of the Druzhba oil pipeline.

The pace of technology stocks is restrained, investors are looking forward to the results of the BI RDG. JCI broke below the psychological level of 7,000, before finally closing up by 16 points, in line with the relative positive sentiment of a high coal commodity prices, which again supported Indonesia’s Trade Balance surplus. As many as eight of the eleven sectors rose, with the Technology Sector slightly gaining 0.3%. At this moment, investors are looking forward to results of the BI Nov. RDG on Thursday afternoon, it is projected to raise the BI 7DRR by +50Bps, based on a Bloomberg survey. Amid the wait for BBRI 3Q22 Earning Results scheduled to be released this morning, NHKSI Research projects the JCI having the opportunity to move sideways.

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