Less Hawkish Fed boosts tech stocks, and Nasdaq led Wall Street gains, rising more than 2%. Weekly jobless claims, US Initial Jobless Claims, unexpectedly rose by 4K to 235K claims, and layoffs jumped to their highest level in 16 months, signaling the Fed will be less Hawkish after July’s 50Bps-75Bps FFR hike. Apart from increases in technology stocks and growth stocks which are sensitive to interest rate sentiment, energy stocks also rose in line with rising commodity prices. WTI Crude Oil contract in August 2022 once again surpassed the psychological level of USD100/Barrel or rose more than 4% to the level of USD102.73/Barrel, returning investors’ focus on supply shortages, despite fears of a potential global recession.
The issuance of JPY81B Samurai Bonds propelled the June forex reserves up to the level of USD136.4 Billion. This positive sentiment was amidst the flatness of the rupiah at the psychological level of IDR15,000/USD. Yesterday, the JCI slightly rose 6 points to 6,652, with technology up 2%, leading the sectoral gains. The rise in technology stocks, which had relatively high DER at the beginning of their development, was in the midst of waiting for the results of the BI RDG on Thursday the third week of July. Core CPI was 2.63% YoY, which is still below the middle value of BI’s 2%-4% target, has made a number of market players see that BI will not necessarily increase the BI 7DRRR this July, even though the Headline CPI has exceeded BI’s annual target. NHKSI Research projects that the JCI will move upward (technical rebound) in the range of 6,600-6,900.
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