S&P 500 and Nasdaq fell back into negative territory, while Dow Jones closed flat on Wednesday, while government bond yields marched higher; as new inflation indicators from China, Germany, and the US hardened expectations that high-interest rates would be in force longer than expected. China’s Manufacturing Purchasing Managers’ Index (PMI) rose to 52.6 (Feb.) from 50.1 (Jan.), marking the fastest growth in more than a decade. In the US, prices for raw materials were recorded to rise to 51.3 (clearly higher than the forecast of 45.1 & Jan. figure of 44.5); suggesting inflation could remain elevated. Meanwhile, from Europe, the release of German CPI data (Feb.) still has not budged from the level of 8.7% and failed to meet expectations of a forecast down to 8.5%; confirming the level of Inflation in Europe also remains a challenge. In response to the US macroeconomic data, the 10-year US Treasury yield suddenly soared to 4.006%, returning to the position for the first time since November; while the two-year yield was at its highest level since 2007, at 4.889%.

JCI closed relatively flat as market participants digested Inflation data (Feb.) which rose to 5.47% YoY from 5-month lows in Jan. 5.28% (also higher than expected 5.44%). On a monthly basis, goods & services price growth crept up 0.16% in Feb. (vs. forecast 0.11%, vs. previous 0.34%). On the other hand, Core Inflation (Feb.) seems to be more manageable as it fell to 3.09% YoY (clearly lower than the consensus 3.26% & previous month’s 3.27%). NHKSI RESEARCH suggests, considering JCI has not yet been able to break the MA10 & MA20 Resistance up to 6890-6900. Indonesian capital market investors/traders should focus more on the nearest Support, which is MA50/6830 (up to 6800), where if this defense collapses, it will turn this Sideways into a downtrend.

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