The US stock market closed in negative territory on Friday (19/05/23) due to the deadlock in talks over a solution to the US debt ceiling; however, the S&P500 posted its best performance since March. Meanwhile, recent progress in this matter has started to become more noticeable after President Joe Biden and Republican Kevin McCarthy pledged to meet as soon as Biden returns from the G7 Summit to reach an agreement which could bring some relief to the overall financial market sentiment. Japan’s Core Machinery Orders for March unexpectedly fell below expectations, – 3.5% YoY, a quite poor result compared to the forecast of 1.4% and the previous month’s positive high of 9.8%. Later in the week, China’s central bank will announce their benchmark interest rate which is likely to remain unchanged at 3.65%. Then, later today, data from the Eurozone will be released: Construction Output (Mar.) and Consumer Confidence (May); and financial market participants will monitor comments from top Federal Reserve officials on the future direction of monetary policy.
Considering the current market sentiment, NHKSI RESEARCH estimates that JCI has little bullish sentiment to continue last Friday’s gains at least to the nearest resistance level: MA10 around 6730-6740. However, Indonesian investors/traders are advised not to average up too much as the situation is still highly speculative.
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