US manufacturing activity contracted. US S&P Global data showed Mfg. PMI Oct. began to contract or was at 49.9 (Vs. Sept. 52), indicating the Fed managed to slow domestic business activity. As for the services sector, the contraction is seen to be more profound as PMI Services fell to 46.6 (Vs. Sept. 49.3). This occurrence affects the PMI Composite to be contracted as well to the level of 47.3 (Vs. 49.5), raising hopes that the Fed could begin to slow the hike of FFR pace. Meanwhile, Wall Street went upside, with the Nasdaq closing up 92 points, as tech companies dominated the release of earning results this week. On the other hand, the bond market, which tends to be conservative and skeptical, remains worried about the Ultra Hawkish stance of the Fed. UST2Y yields have risen again to 4.5%, with UST10Y reaching 4.3%. Bond investors see the Fed Fund Future survey and project an FFR rise of +75 Bps in November to have a probability of almost 100%, while the December FFR is +75 Bps of 50%.
Investors are still digesting several Earning Results. At the beginning of the week, JCII moved up close to the psychological level of 7,100 before finally closing up only 35 points. The JCI strengthening decrease was caused by one of the large-cap technology stocks, which recorded a stock price decline of 5% amid lock-up sentiment. Investors are also still waiting for the release of a number of Big Cap. Earning Results this week. Amid several sentiments, NHKSI Research projects JCI to move Bullish today, with Support: 7,017- 7,000 / 6,910-6,900 and Resistance: 7,092-7,110 / 7,140-7,150.
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