US stocks investors held flat ahead the US Inflation (Apr.) data scheduled for release this Wednesday (07.30 pm GMT), where monthly CPI is predicted to creep up 0.4% MoM (vs. 0.1% previous month). Investors are monitoring this data closely after the release of the US Nonfarm Payrolls and Unemployment Rate (Apr.) last Friday that still showed a tight labor market; while on the other hand it somewhat cutting the risk of a global recession yet making market participants have to reconsider the need for high interest rates until the end of the year. From Asia, Japan’s Services PMI (Apr.) shifted slowly into expansionary territory, while they released Household Spending (Mar.) this morning, which turned out to be weaker than expected; while Indonesia reported Foreign Exchange Reserves (Apr.) at USD 144.2 billion (equivalent to 6.3 months of import cover), slightly lower than March’s USD 145.2 billion due to the need for external debt repayment as well as liquidity provision in the festive season of Eid al-Fitr. China will follow with Trade Balance (Apr.) data, which is not predicted to be as strong as March’s figure of USD 88.19 billion but instead expected to be around USD 71.6 billion. By noon before European markets open, the UK will release the Halifax House Price Index (Apr.), a leading indicator of the health of the property sector.

NHKSI RESEARCH expects today’s market sentiment to be flat again as it was yesterday and, therefore, will not push JCI to a bullish area above 6845. Indonesian capital market investors/ traders are advised to Hold all positions, Wait & See, waiting for the release of US Inflation data which will play a significant role in the direction of global financial markets.

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