Wall Street ended in positive territory on Monday (28/08/23) as the Nasdaq led gains of 0.8%, while the overall market was buoyed by rising 3M and Goldman Sachs stocks ahead of the PCE Inflation and employment data releases this week; that will offer more clues on the Federal Reserve’s interest rate path. Markets also digested last Friday’s comments from Fed Chair Jerome Powell that the central bank may need to raise interest rates further to ensure inflation is contained. Focus now shifts to a report on the Personal Consumption Expenditures (PCE) Price Index inflation report, the Fed’s preferred inflation gauge, to be released on Thursday; followed by Non-farm Payrolls data due on Friday. Shares of Chinese companies listed on Wall Street also rallied over 2% after China halved the stamp duty on stock trading (aside from softening margin necessity) effective Monday to boost its ailing market. Earlier this morning, Japan just released its Unemployment Rate of 2.7% in July, up from 2.5% in the previous month. Market participants will monitor the first US employment data to be published today, namely JOLTs Job Openings (July) along with Consumer Confidence (Aug.) which is forecasted to fall slightly to 116 from 117 in July.
JCI also rallied by 26.28 points / +0.38% to bring it to 6921.72 level, a safer position above MA10 & MA20 albeit it still not exiting the Bullish Flag pattern. Foreign recorded a Net Sell in the RG market of IDR 271.56 billion, bringing their monthly position to a net sell of IDR 1.45 trillion (although YTD net long position is still relatively thick at IDR 14 trillion). NHKSI RESEARCH suggests that investors/ traders should first monitor the actual buying strength, whether it is able to break through the critical Resistance of 6950-6970 that is in sight, before deciding to add more buying; or instead should be prepared to immediately reduce positions because the history of previous market movements always retreats regularly once faced with this door.
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