The Earning Results season and solid manufacturing output triggered Risk-On towards the Wall Street Stocks. DJIA gained more than 300 points, leading Wall Street’s gains, with UST2Y yields going downwards below the 4.5% level. Goldman Sachs shares rose 2% after recording a solid performance in the Fixed Income Trading Division, taking advantage of a higher FFR. Moreover, economic data showed that U.S. Industrial Production Sept. MoM rose 0.4% (Vs. Aug. 0.1%), in line with Capacity Utilization Sept., which rose to the level of 80.3% (Vs. Aug. 80.1%) and complementing the Factory Orders data which previously recorded a growth.

In anticipating several Earning Results, both Banking and Consumer are projected to be relatively solid. This projection causes NHKSI to expect JCI to move Bullish again. Finance and Non-Cyclicals Consumers recorded a gain of more than 1%, leading the sectoral gains yesterday. Moreover, JCI had risen close to the psychological level of 6,900 before finally closing slightly higher by 0.1% to 6,834. Investors are in the middle of wait and see, ahead of the BI RDG results on Thursday. Market consensus projected the BI 7DRR for October to rise between 25-50 Bps. Even speculation mentioned that it might increase to 75 Bps, in line with the rupiah exchange rate, which was close to the IDR 15,500/USD level earlier this week.

Download full report HERE.