US stocks rallied and moved in a volatile trading session. At the same time, the US Dollar retreated on Tuesday as investors digested comments from Federal Reserve Chair Jerome Powell at the Economic Club of Washington about how long the central bank may need to tame inflation. Powell said significant declines in inflation should be seen by 2023. However, cutting rates will not happen anytime soon, given the Fed’s 2% inflation target and the strong US jobs report last Friday. The S&P 500 rallied 1.29%, while the Nasdaq jumped 1.9%. Oil prices climbed more than 3% after Powell’s statement above eased market concerns over rate hikes. Recovering demand from China and supply concerns after a major earthquake in Turkey are predicted to boost prices.

JCI rallied quite significantly by 61.5 points/+0.895% and finally returned to positive territory at the 6935 level, the most definitive Closing position since last December. The second positive catalyst a day before the 4Q22 GDP data was contributed by the report of Indonesia’s foreign exchange reserves (Jan.) that rose to USD139.4 billion from USD137.2 billion in the previous month, an 11- month high and equivalent to a 6-month import and government debt needs. The increase is underpinned by growth in tax, service sector revenue, and government bond issuance. Considering JCI’s current position, NHKSI RESEARCH reiterates its short-term bullish view, which is likely to continue today underpinned by positive regional market sentiment, while still reminding investors/ traders to Average Up gradually as JCI passes the 6950-6960 Resistance area on its way to the psychological level of 7000.

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