All three major US indexes ended last week in solidly positive territory with the Nasdaq again leading the gains by rising 1.9% after a raft of sentiment from Big Tech companies’ earnings reports, economic data, and central bank announcements boosted investors’ confidence in a soft landing for the U.S. economy. U.S. annual inflation slowed significantly in June, likely prompting the Federal Reserve to quickly end its fastest interest rate hike cycle since the 1980s. In the 12 months to June, the PCE price index rose 3.0%. That was the smallest annual gain since March 2021 and followed a 3.8% increase in May. Meanwhile, US Treasury yields fell on Friday as well as markets digested the Bank of Japan’s decision to alter its ultra-loose monetary policy. From the Asia, here are a series of sentiments that will be considered by investors in determining the direction of stock market movements at the beginning of this week: China’s Caixin manufacturing PMI; Consumer Confidence index, as well as Japan’s new home construction and unemployment data for June; Australia’s manufacturing PMI data for July as well as building approvals (June); and not forgetting South Korea preparing with July import/export growth report. Later in the afternoon, the Euro Zone’s CPI (July) and 2Q23 GDP data will be awaited.

Considering the closing position of JCI last week, it seems that JCI successfully tested the nearest Support which is MA10 because it was still able to close above the level of 6887; thus this short-term uptrend is still relatively intact. Investors are still expected to be vigilant because as long as Resistance 6950-6970 has not been broken, then the JCI direction is still open to the possibility of returning to short consolidation towards the following Supports: 6887 / 6812. Advise: Hold; Wait & See.

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