The potential for a recession makes analysts’ expectations high. Even though Wall Street is on holiday to commemorate Independence Day, market players are still waiting for the FOMC Meeting Minutes and are starting to anticipate next week’s CPI data. Investors are also watching whether the Earning Season Results can still meet analyst expectations, amid a number of economic data exacerbating fears of a potential recession. If the company can match or exceed expectations, it can be a positive catalyst for the issuer’s stock. The latest economic data showed the US June ISM Manufacturing fell to as low as 53.0. Reduced demand in the face of high inflation was also seen in the ISM New Orders and Prices Paid which fell to 49.2 and 78.5 levels, indicating the US economy is cooling.

Survey: US annual inflation in June reaches 8.8% (Vs. May 8.6%), still up even though the Fed has hiked FFR 75 Bps. Bloomberg survey data also shows that the monthly US inflation in June is projected at 1.1% (Vs. May 1.0%), which can confirm an increase in FFR to 2.25%-2.50% by the end of July. This external sentiment brought the rupiah closer to the psychological level of IDR15,000/USD, and the technology sector weakened by up to 4% at the beginning of the week. In the midst of the Wall Street holiday, the JCI looked for a direction of movement, briefly breaking below the psychological level of 6,600, before finally closing at the level of 6,639 or weakened more than 2%. NHKSI Research projects that the JCI will move upwards (rebound) in the range of 6,550-6,910 today.

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