The Fed Passes Hawkish Peak. Nasdaq led Wall Street’s gains, up 3.33%. The probability of the Fed going more Hawkish, or raising the FFR to 2.25%-2.50%, drops from 50% to 35%, based on CME data. Investors believe the Fed only needs to raise the FFR by 100 bps for the next two meetings, or else the tight monetary policy ends in September, leaving the FFR at 1.75%-2.00%. Meanwhile, investors are also reengaging in the US bond market, causing the yield on UST10Y to drop to 2.74% last Friday, after briefly reaching 3.14% this May.
JCI has broken through the psychological level of 7,000 again, breaking the “Sell in May and Go Away” theory. Foreign investors recorded a net buy of IDR 1.3 trillion,
with “The Big Four” bank stocks dominating ll top buy foreign transactions. The increase in Statutory Reserves gradually up to 400 bps (Conventional Commercial
Banks), does not affect the liquidity of BUKU IV banks, as they are able to record very good TPF growth. Starting this four-day trading session, NHKSI Research projects that the JCI will move downward (technical correction) in the range of 6,850-7,100.
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