The Dow Jones and S&P 500 indexes extended their losing streak, although not as steep as last Tuesday, where the Nasdaq alone managed to close into positive territory; as the market digested the FOMC Meeting Minutes result, which stated that almost all Federal Reserve officials agreed to set the upcoming interest rate hike to 25 bps and bring the FFR to 4.75% at the next FOMC in March. In addition, they also emphasized that high inflation would remain a key factor that would shape monetary policy, and further rate hikes would be necessary until it was controlled (flattening). Money market participants expect Fed Fund Rate to peak at 5.35% by July and stay around those levels till the end of 2023. Several macroeconomic data are scheduled to come out today, one of which is from the Eurozone: Inflation (Jan.) and US: 4Q22 GDP, Initial Jobless Claims, and Crude Oil Inventories. As for the energy index has fallen for seven consecutive sessions, triggered by concerns that an economic slowdown will not be realized.

JCI ended in negative territory at 6809.97/a minus of 63 points (-0.92%) despite a small foreign net sell of IDR37.9 billion; the lowest position within the last month. Technically, this position is below the MA50 Support and MA10 & MA20, which seems ready to deadcross; or end this short-term Uptrend first. If today’s Closing is lower than 6800-6780 Support, then it is confirmed that JCI should look for the following Support of around 6550. To neutralize the downside threat, JCI must be able to perch back at least above 6825, with an attempt to surpass 6890-6900. NHKSI RESEARCH advises Indonesian capital market investors/traders to Hold and remain vigilant whether it is necessary to reduce positions further until regional and domestic sentiment is more conducive..

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