Wall Street stocks closed mixed this weekend, after experiencing pressure related to concerns about inflation. The S&P 500 and Dow Jones indexes closed slightly higher +0.01% and +0.03%; Nasdaq declined -0.30%. The stock market is in a tough situation, as inflation begins to erode consumer purchasing power, and weighs on company performance. A number of investors are waiting for the results of the FOMC Meeting Minutes on early Thursday (Indonesian time); and began projecting a 50 bps increase in the FFR to 1.25% to 1.50%, at the FOMC Rate Decision meeting in mid-June.

The trend of Indonesia’s current account surplus, and China’s monetary easing, became positive sentiment this weekend. JCI rose 95 points to 6,918. The high export prices of global commodities, coal and CPO, supported the trade balance (non-oil and gas). In the end it had a positive impact on the current account balance in 1Q22, recording a surplus of +USD 0.2 billion (Vs. 4Q21 surplus +USD 1.5 billion; 1Q21 deficit-USD 1.1 billion). PBoC maintains 1Y Loan Prime Rate at 3.70%; and cut 15 bps 5Y Loan Prime Rate to 4.45%; amid the trend of rising global interest rates. NHKSI Research projects that the JCI will move downward in the range of 6,800-7,000.

Download full report HERE.