The US unemployment rate in March was recorded at 3.6%, the lowest in two years, supporting Wall Street’s modest gains in early 2Q22 trading. The strength of the US labor market, also supports the expectations of CME Fedwatch Tool on the hawkish stance of the Fed. Currently, the CME Fedwatch Tool expectation for 50 bps increase in the Fed Funds Rate at the Fed’s upcoming May 2022 meeting is at 73.3%. The strengthening of the stock market ignored the signal of recession in the bond market, with the US Treasury yield inversion for UST2Y and UST10Y forming for the third time last week.

Starting 2Q22 trading, JCI set another record at 7,099, before finally closing at 7,078. Market participants responded positively to Markit data, which reported that Indonesia’s manufacturing PMI index for March 2022 remained expansionary, at 51.3. Meanwhile, Statistics Indonesia announced that inflation in March 2022 increased by 2.64% YoY, in line with the increase in the prices of a number of foods including cooking oil. NHKSI Research projects that the JCI will move mixed today, within a range of 7,000-7,100.

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