The hawkish signal continued, lessening expectations of the Fed Pivot in December. The Fed, again, raised the FFR by +75Bps for the fourth time in November and suggested the Next FFR hike would face a higher threshold. The Fed Chairman, Jerome Powell, also rejected the idea of a “Fed Pause” and the Dow closed down 500 points. Additionally, short-tenor bonds with the highest sensitivity in the FFR gains, UST2Y recorded a yield increase that broke the All-Time High level of 4.60%, leading to a suppression in the Nasdaq to weaken by more than 3%. This statement by The Fed comes as inflation is projected to remain at its highest level or above 8% YoY, according to a Bloomberg survey.

Profit taking of several banking stocks, suppressing the finance sector to weaken by 0.6%. Investors’ selective sell-off in a number of banking stocks happened after the stocks recorded high gains since mid-October. On the other hand, technology strengthened by almost 2% or led to sectoral strengthening, in line with Indonesia’s relatively maintained inflation in October, becoming a reference for BI’s RGD on November 17. After the Fed’s FFR hike of +75Bps, NHKSI Research projects JCI today to move bearish to limited downside.

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