Wall Street stocks continued to consolidate as worries mounted that an overly hawkish tone by the US central bank could push the US economy into recession. Meanwhile, European shares recorded their biggest daily saleoff of the year, confirming a global stock index was in negative territory for three consecutive days. US economic data reported Initial Jobless Claims fell less than expected, proving the labor market is still solid & tight. Meanwhile, US housing data, such as Building Permits, showed that growth began to slow down in December. The US government is seeking an agreement with the US Congress to lift the ceiling, as the US Government hit its USD31.4 trillion borrowing limit to avoid a fiscal crisis in the next few months.

Indonesia’s central bank on Thursday raised its seven-day reverse repo rate in an effort to keep inflation in check and to safeguard the stability of the rupiah. Bank Indonesia increased its benchmark interest rate by 25 basis points to 5.75% as expected, its overnight deposit facility by 25 basis points to 5.00%, and its lending facility by the same margin to 6.50%. For 2023, Bank Indonesia maintained its outlook that the economy could grow between 4.5%- 5.3% but trimmed its global economic outlook to grow between 2.3%, from 2.6% previously forecasted, although it is still quite optimistic that Indonesia’s economy can grow between 4.5%-5.3%. JCI closed Thursday’s trade with a steady rise above the Support MA, opening up the potential for further gains at the end of the week to around 6830-6860, or ideally in the 6900 area. NHKSI RESEARCH suggests traders/investors use this positive market momentum to let their profits run, yet still, remain vigilant in monitoring the nearest Support area of 6760 to ensure this bullish minor trend remains intact.

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