Today’s Outlook:
• The Dow Jones Industrial Average led the way down on the last trading day of September with a 0.5% correction, as fears of a continued Fed rate hike and US government shutdown still haunted market sentiment. However, recent update says that the US Congress passed a stopgap funding bill late on Saturday with overwhelming Democratic support after Republican House Speaker Kevin McCarthy backed down from an earlier demand by his party’s hardliners for a partisan bill; thereby averting a last-minute shutdown of the US government.
• The Core Personal Consumption Expenditures (PCE) price index, the Fed’s favorite gauge of Inflation, managed to flatten to 0.1% from 0.2%; fostering investor optimism that the wave of Inflationary pressures is under control, and thus the Fed could be nearing the end of their interest rate hike trend. Eventually, this will bring down US Treasury yields which have skyrocketed 20% in the third quarter, after dropping around 4% in early July.
• The latest news regarding strikes at car manufacturers GM & Ford continues, but not so with Stellantis which is starting to show progress on a deal.
• ASIA MARKETS: Indonesia will look forward to Nikkei Manufacturing PMI (Sept.) and Inflation (Sept.) data today. While a series of important data will also emerge from South Korea (Export & Import, Trade Balance for September), China (PMI for September), Japan (Tankan Manufacturing Outlook Index for 3rd quarter yesterday).
• Assessing the JCI’s closing position yesterday, which was blocked by MA10 & MA20, NHKSI RESEARCH advised investors/traders to hold off on buying too much before the 6970-7000 level is broken again. The wave of foreign outflow dampened the JCI’s enthusiasm which was almost flat or -0.35% during the month of September, as it was impacted by Foreign Net Sell of IDR 3.12 trillion during the last month; making foreign position in Indonesian stock market again eroded to Net Buy of IDR 9.31 trillion on year-to-date basis.
Company News
• UNTR : Heavy Equipment Sales Slope in August 2023
• INTP : Cement Sales Volume Projected to Increase 4%
• MRAT : Excellent Performance in the First Half of 2023
Domestic & Global News
• Bappebti Plans to Launch CPO Exchange, What Effect to Palm Oil Issuers?
• IMF Sees China’s Economy Stabilizing, Advises for Economic Reforms
Download full report HERE.
