Investors ignore jobless claim data. Having weakened at the beginning of trading, earning results season propelled Wall Street to the green. Investors’ optimism on the 3Q22 Earning Results prompted analysts to raise earning profit growth expectations for companies in the S&P 500 index to 3.1% from the previous projection of 2.8%. Moreover, US Initial Jobless Claims, which ended on Oct.15, fell more than 5% WoW, indicating the labor market remains tight amid the FFR rise. At the end of the trade, Wall Street weakened, with the DJIA down 90 points.

BI’s frontloading to dampen inflation expectations. JCI managed to close strong with 120 points to 6,980 yesterday. Investors responded positively to BI’s Hawkish move in response to the overshooting inflation expectations. As of last October, Indonesia recorded core inflation at 3.21% YoY; and headline inflation at 5.95% YoY. Furthermore, the rupiah exchange rate is withstanding still around the level of IDR 15,500/USD. Market participants see that the continuation of BI’s tight monetary policy is an act of anticipation, responding to the narrowing spread between the BBI 7DRR and FFR.

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