All three major Wall Street indexes closed mixed; European stocks were also finished little-changed as talks in Washington resumed to avert a US default; while gold prices retreated under pressure from hawkish remarks by Federal Reserve officials. World oil prices were somewhat finished higher on demand optimism; US Treasury yields also crept up. President Joe Biden and a Republican Kevin McCarthy met yesterday to sew up an agreement on a solution to the US government debt ceiling to avoid a catastrophic default, which due 10 days. Regarding interest rates, Federal Reserve officials are not yet in agreement on the future FFR hike plan, with St. Louis Fed President Bullard remain in hawkish tone as he foresees two more rate increases this year, while Minneapolis Fed President Kashkari, expressed support for a pause in June; and San Francisco Fed President Daly said it is too soon to confirm what the Fed will do next without looking at important economic data that will be released on Friday, including Durable Goods Orders, PCE Price Index, and Personal Spending. Coming from Asia, China left its interest rate unchanged at 3.65% as the economy continues to improve. They also banned the sale of Micron Technology’s US chips in the country on security grounds. Today there will be more global macroeconomic reports awaited by market participants, including: from Japan: PMI (May) and BOJ Core CPI; while Germany, Eurozone, UK, and US simultaneously release: PMI (May). Also, the US will monitor the Building Permits and New Home Sales (Apr) figures as a measure of the property sector’s health.

NHKSI RESEARCH assesses that yesterday’s JCI gains which encountered the MA10 Resistance will be tested again today. Indonesian investors/traders are advised not to be hasty in increasing their purchases before ensuring that the JCI has successfully broken through the Resistance; up to 6765 as an important Resistance. A gradual Average Up is still the wisest advice, until JCI confirms it has passed a number of MA Resistance (above 6790).

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