Global equities and crude oil rebounded as market participants digested the macro data that continued to show the strength of the US economy, which validates the Federal Reserve’s tight monetary policy stance. Initial Jobless Claims fell to an unexpected 192K from 200K (lower than the previous period’s 195K), indicating the labor market is still tight. The US 4Q22 GDP report confirmed the economy grew solidly at 2.7%, albeit lower than the 2.9% forecast and from the previous quarter’s 3.2%. The 4Q22 Personal Consumption Expenditures (PCE) reading, the Fed’s preferred inflation measure, was revised upward to 3.7%; indicating inflation was much stronger than initially expected. From Europe, the Eurozone CPI (Jan.) reading did not budge at 8.6% YoY as expected, a downward from December’s 9.2%; on the other hand, Core Inflation showed an increase to 5.3% (vs. previous 5.2%).

Following the Asian & European stocks, JCI closed green at 6839.45 yesterday, an increase of 29 points/+0.43%, supported by IDR20.43 foreign buying; amidst market players’ reaction to the release of FOMC Meeting Minutes the day before US Central Bank policymakers showed a continued hawkish stance (by seeking a less aggressive rate hike) to tame the inflation rate. Meanwhile, from Asia, the Bank of Korea kept interest rates at 3.5% in its February meeting. If JCI can stay above MA50/6832 Support, then there is a chance that this weekend will close with a further bullish towards MA10 & MA20 Resistance (6880-6890); and it would be better if it is able to perch back above 6900 to secure positions from the threat of DOUBLE TOP reversal bearish pattern. NHKSI RESEARCH advises investors to Wait & See, or Hold all positions as the market is expected to be volatile while trying to find a positive sentiment that can maintain this short-term Uptrend.

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