All three Wall Street indices fell quite significantly, led by the Dow Jones, which depreciated 1.81% or 613 points, followed by the S&P lost 1.56%, and the Nasdaq dropped 1.24%, paced by weak economic data, which fueled a contracting economy and recession worries. Hawkish comments from Federal Reserve officials regarding this year’s interest rate outlook, brought negative sentiments to the market. US economic data showed that the Retail Sales and Producer Prices Inflation rate declined more than expected in December, while production at US factories fell more than expected, and November output was weaker than thought. This raises the thought that it is unlikely that a soft landing scenario will happen during this effort to combat inflation. Moreover, emerging corporate earnings reports also affect the sentiment towards the market atmosphere.

JCI was finally able to close slightly above MA20 Support and only got slightly weakened by -1.5 points to 6765.8 after weakening to 6721. However, the appearance of a Doji candle finally came near the 6800 Resistance area, again raising speculation that a pullback might threaten, especially with negative sentiment from the regional markets. Today, market participants will pay attention to the BI Board of Governors Meeting (RDG), which is expected to raise the BI7DRR benchmark interest rate by 25bps. NHKSI RESEARCH advises Indonesian capital market traders/investors to prepare themselves for the possibility of a volatile market, which might repeat the consolidation towards MA10 Support/6700-6670. 

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