A gauge of global stocks climbed for a third straight day, the S&P and Nasdaq rallied 1.5% and 3%, respectively, as policy announcements from a host of central banks added to optimism that the cycles of interest rate hikes might be near an end. ECB & BOE raised their benchmark rates by 50bps to 3% and 4%, respectively, with the Bank of England signaling the tide was turning against inflation and the ECB indicating at least one more hike was on the horizon. US economic data showed weekly Initial Jobless Claims dropped to a nine-month low of 183K (vs. forecast: 200K & vs. previous: 186K), showing the labor market remains strong, while worker productivity in the fourth quarter accelerated based on Nonfarm Productivity data at 3% (higher than forecast: 2.4% & previous: 1.4%).

JCI is also moving in positive territory, gaining 28 points/+0.41% while not being supported by foreign buying interest, approaching the critical 6900 level, which we will soon witness whether it can be surpassed or not at the end of this week. The strengthening of large-cap stocks in the Technology sector, such as BUKA, GOTO, and ARTO, is in line with the positive sentiment from the US benchmark interest rate hike of 25 bps, which met market expectations as the inflation rate eased. USD/IDR is still staying below the psychological level of 15K, at IDR 14688/USD, marking a fourth consecutive day of strengthening and the highest level since mid-September 2022. NHKSI RESEARCH advises Indonesian investors/traders that AVERAGE UP should be done if the JCI psychological level of 6900 is confirmed to be surpassed; it is safer to wait up to the near Closing hour position so that its validity can be confirmed.

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