Lagging Inflation indicator restrains Wall Street’s pace. The labor market is one of the Lagging Indicators of inflation, ADP Employment Change AS Sept., which measures the change in non-farm private sector employment, adding 208K (Vs. Aug. 185K). This ADP version of the solid labor market indicator, showing rising FFRs and tighter financial conditions of companies, has not dampened demand for labor. This assumption again suggests the Fed will maintain its FFR at a high level for a longer period, or increase its FFR +75Bps in early November, according to the CME FedWatch Tool. On the other hand, despite depreciating more than 1%, energy stocks supported Wall Street’s movement or closed only 0.2% lower. Energy stocks appreciate as OPEC+ agrees to cut oil production.
Rupiah volatility makes investors wait and see. Investors are watching the wide volatility of the rupiah, which had appreciated to the level of IDR15,100/USD yesterday, or strengthened nearly 1% from the previous day which had depreciated to the level of IDR15,300/USD, ahead of the release of Cadev data tomorrow. The latest data shows that Cadev in August was valued at USD132.2 billion or relatively the same from the previous month, indicating a potential for capital inflows to Indonesia amid the sentiment of strengthening USD. JCI closed below the psychological level of 7,100, after having strengthened 0.8% from the previous day. Meanwhile, Transportation & Logistics, as well as Technology, led the sectoral strengthening, or appreciated 2.8% and 1.8%, respectively. NHKSI Research projects JCI today to consolidate or tend to move sideways, with Support: 7,070 / 7,000 / 6,960 and Resistance: 7,090 / 7,130 / 7,170 / 7,200-7,225.
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