Dow Jones confirmed a bear market, complementing the previous bearish Nasdaq and S&P500, in April and June. The bear market is down more than 20% from its highest level every year. Yesterday, the Dow Jones depreciated to 29,260 or down more than 20% from its highest level of 36,799 on January 4. Although the September FFR increase of +75Bps has been Price In, investors are worried about the Fed’s FY22E interest rate hike to the level of 4.4% from the current 3.00%-3.25%. This indicates that there will be a further increase in Hawkish FFR, or an increase of more than 50 bps in November and December. US economic recession indicators also occur in the UST2Y Vs UST10Y Yield Inversion spread widening, is approaching 50Bps, with the current yield of UST10Y almost reaching the 4% level.
Investors eyed on September’s inflation which hit 1%, as the Banking Sub-Sector held back pressure on the JCI to fall deeper yesterday. Based on a Bloomberg survey, Indonesia for the September MoM period is projected to record an inflation rate of +1.1% (Vs. Aug. deflation -0.21%). In addition to fuel and transportation within the city, investors are looking at the factor of the increase in rice prices as one of the contributors to inflation in September 2022. Meanwhile, after depreciating 2% in early trading, before the JCI correction was cut or closed, it only weakened 0.7%, making NHKSI Research project that today Bearish is still possible to continue, with Support levels: 7,100 / 7,040 / 7,000 / 6,900 and Resistance: 7,180 / 7,220-7,225 / 7,236-7,240.
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