US manufacturing expansion slows, Wall Street mixed ahead of the Fed meeting at the Jackson Hole Symposium on Aug. 25-27. US S&P Global Data Aug. showed private sector activity slowed, with the Manufacturing PMI posting a slowdown in expansion to 51.3 points (Vs. Jul. 52.2 points), facing demand decline due to inflation and tighter corporate financial conditions. Meanwhile, contraction occurred in the services sector, with the Services PMI contracting deeper to 44.1 points (Vs. Jul. 47.3 points). This made the Composite PMI contract to 45.0 points (Vs. Jul. 47.7 points) or the lowest since February 2021. Meanwhile, speculations on Front Loading, continuation of 75Bps rise in September’s FFR re-emerged, making the Dow Jones weaken more than 100 points.

Hawkish BI as risk mitigation, the government’s subsidized fuel policy has the opportunity to have a significant Second Round Effect. Both the supply limitation and the increase in the price of subsidized fuel for Pertalite and Solar types, started the Domino Effect of an increase in transportation fares, production costs and distribution in a number of sectors, including Consumer. This inflation-resilient sector predominantly uses diesel fuel in its distribution process. Meanwhile, the BI 7DRRR increase of 25 bps in August provided certainty to the market, and the JCI rose 1% before finally closing up to a level of 7,163 points. NHKSI Research projects that JCI will move Limited Upside, with Support: 7,125-7,106 / 7.070-7,065 / 7.020- 7,000 and Resistance: 7.183 / 7,200-7,230.

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