Several Big Cap. Tech performances were depressed, Nasdaq weakened by 2%. Google’s parent company, Alphabet, reported a slowdown in revenue growth as competition tightened on digital advertising. Alphabet also reported YouTube ad revenue that missed market expectations. Moreover, Microsoft’s performance pressure occurred due to a slowdown in the growth of the Cloud Azure and Software Guidance. On the other hand, the Bank of Canada’s Dovish stance has raised the interest by only +50Bps (Vs. Surv. +75Bps) to 3.75% in October, thus giving hope to the Fed in slowing the pace of the FFR hike. This positive sentiment restrained the pressure in the Wall Street stock market before finally closing with mixed.

The October inflation rate is subsiding. Based on a Bloomberg Survey, Indonesia’s Headline Inflation rate for October is projected to be only 0.09% MoM. Besides the normalization of several food commodity prices, NHKSI Research sees the impact of the significant increase in subsidized fuel prices by up to 30%, as reflected in the September inflation rate. Headline Inflation in September reached 1.17% MoM, compared to August, which recorded deflation of 0.21% MoM. Moreover, the selective sell-off of investors after the release of several Big Four Bank Earning Results weakened the Financial Sector by more than 1%. Meanwhile, the Technology Sector strengthened by up to 3%, withstanding the pressure on the JCI, which managed to close at 7,043. Thus, we project JCI today to move in a consolidation again or tend to be sideways.

Download full report HERE.