Investors ignores that Consumer Confidence exceeds expectations. Wall Street closed lower for the third day in a row, continuing the fear that the Fed would continue to be aggressively Hawkish in order to combat persistently high annual inflation. Meanwhile, monthly inflation that started to sag, along with lower gasoline prices, supported Conf. Board Cons. Confidence AS Aug. to level 103.2 (Vs. Surv. 98.0; Jul. 95.3). The improvement in Consumer Confidence was driven by an increase in the Conf index. Board Present Situation and Board Expectations rose to 145.4 (Vs. Jul. 139.7) and 75.1 (Vs. Jul. 65.5, respectively). Consumer Confidence suggests that household spending, the main growth driver of the US economy, is currently experiencing a Technical Recession.
With a tug of war the amount of the price increase in subsidized fuel, the JCI once again touched 7,200. Investors are beginning to observe the positive impact of shifting fuel subsidies to more productive sectors. Meanwhile, part of the fuel subsidies will be used by the government to finance three social assistances worth a total of IDR 24.2 trillion, with the hope of reducing the burden due to rising inflationary pressures. NHKSI Research projects that JCI Possible Consolidation will continue, with Support: 7,150-7,120 / 7.080-7,060/7,015-7,000 / 6,950-6,930 and Resistance: 7,200-7,230.
Download full report HERE.