FFR Hattrick rose +75Bps, pushing US Big Bank Lending Rates to their highest level since the Subprime Mortgage crisis. Wall Street moved higher in early trading, as sentiment rose FFR September +75Bps (to 3.00%-3.25%) Price In. However, the sign of the Fed returning to aggressive Hawkish in the November and December FOMC Meetings, or the FFR was revised up from 3.8% to 4.4% until the end of 2022, again received a negative response from investors. Wall Street’s three major bourses each closed down 1.7%. Meanwhile, the three US Big Banks; namely: JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co; raised their Lending Rate by 75Bps, making the 4Q22 US economic recovery costly and likely to lead to a Hard Landing.
The Fed’s interest rate hike which is in line with expectations (Vs. Speculation +100Bps), can be a positive sentiment for the JCI, which is again trying to approach the psychological level of 7,200. Today, investors are looking forward to the results of the BI RDG which is projected to raise the BI 7DRRR by +25 bps to 4.00% for the September period. Market players are also observing the upward revision of Indonesia’s economic growth projection from 5.0% to 5.4% in 2022 by ADB. In the midst of a number of sentiments, NHKSI Research projects that JCI will move to a sideways trend today, with Support: 7,185 / 7,150 / 7.135 / 7.050-7,000 and Resistance: 7,200-7,205 / 7,240-7,252 / 7,300-7,306 / 7355-7,377.
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