JCI Finally Closed Lower Last Week
Last week, Indonesia’s stock markets were volatile. At the early of last week, JCI nudged down at -1.7% as yields between bonds with 3-year tenor and 10-year tenor inverted, and it weakened investors’ confidence in the U.S. economy. The inverted yield curve is seen as an early indicator of recession, possible to occur 18 months ahead, at least. Investors demanded for short-term instruments with higher “collateral” as they panicked over a looming global economic outlook. Yet, in the mid of week, Indonesian market participants were optimistic as the Fed made a dovish stance of no FFR hikes, appropriate for 2019 due to the slowing momentum in the U.S. economy, bringing benefits for emerging economies’ financial markets. Besides, other positive sentiments came from the new rounds of trade talks between the U.S and China in Beijing. The U.S. trade representatives came in Beijing on Thursday, (03/28), and started a new round of talks, aiming to end their tit-for-tat trade war. Thus, JCI, on a weekly basis, nudged down at -1.0%.
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