Unemployment Rate at 3.50% lowest in history, US prepares for Hard Landing. Other employment data show US Change in Nonfarm Payrolls Jul. increased by 528K (Jun. 398K), lifting the Level of Employment above Pre-Pandemic levels, raising fears of September 75Bps FFR Overshoot. The Nasdaq responded negatively, consistently moving in the Red Zone or closing down 0.50%. Some economists see the increase in the FFR is too high, and tight monetary policy in the long term causes the economy to experience a hard landing, with a tendency for deep recession. Speculation on the September FFR Overshoot has the opportunity to boost margins for listed banking companies, helping the Dow Jones to close 0.2% higher.
Optimism of Consumer Confidence supported JCI towards 7,100. Data show the S&P Global Indonesia Manufacturing PMI for July 51.3 (Vs. Jun. 50.2), or more expansive, making NHKSI Research projects that the Consumer Confidence Index in July will remain optimistic, above 100. Meanwhile, manufacturing is back to expansion supported by the domestic consumption recovery. Indonesia’s 2Q22 GDP grew by an impressive 5.44% QoQ and July’s Foreign Reserves were maintained at USD132.2B, becoming a positive catalyst for this week’s trading. NHKSI Research projects that JCI will be bullish with Support: 7,045-7,030/7,000-6,970 and Resistance: 7,100-7,140/7,175, and a recommendation to Sell on Strength / Set Your Trailing Stop.
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