Today’s US dollar strength is attributed to benchmark 10-year US treasury yields hovering near their highest level in seven years. Meanwhile, the most recent comments of US President Donald Trump on trade negotiations with China cause some concern. Trump said he doubts the ongoing Saham.news with China in Washington will turn out to his satisfaction because “China has become very spoiled”. Trump also said “the European Union (EU) and other countries have become very spoiled simply because they always got 100 percent of whatever they wanted from the USA.”
Such statements cause renewed concerns concerning the breakout of the global trade war. But on the contrary, the EU vowed that it must be able to negotiate opening its markets wider to US imports – including car shipments – in a bid to avert a possible trade war.
In the May 2018 policy meeting (concluded on Thursday) Indonesia’s central bank (Bank Indonesia) decided to raise its benchmark monthly interest by 25 basis points to 4.50 % in an attempt to reduce heavy pressures on the rupiah.
Another issue – the one that is giving rise to geopolitical concerns – will be the news that North Korea canceled high-level talks with neighboring South Korea on Wednesday (16/05) because the latter remains involved in military exercises using the USA. Serious doubts have recently emerged on whether or not the historic summit with North Korean leader Kim Jong Un and US President Donald Trump will go-ahead as planned on 12 June 2018.
Contrary to Indonesian bonds and also the rupiah, the Analisa Berita Pasar Modal ended slightly in green territory ( .06 percent) on Wednesday (16/05) after coping with deep red territory which was touched earlier within the day. Indonesian stocks have been sliding significantly in the last number of weeks now have actually become quite attractive, especially for long-term investors. So far in 2018 foreign investors happen to be net sellers of around USD $2.9 billion of Indonesian stocks, implying ifhvlq Indonesian equities are the worst performer in Asia to date this year.
Meanwhile, the central bank of Indonesia (Bank Indonesia) is scheduled to conclude its monthly monetary policy on Thursday (17/05). We expect Bank Indonesia to increase its benchmark monthly interest (the 7-Day Reverse Repo Rate) from 4.25 % to 4.50 percent in an attempt to keep the Indonesian rupiah that has been under heavy pressure in recent weeks. In theory a rate hike is negative for stocks. However, we would not surprised to find out Indonesian stocks react positively to your rate hike tomorrow.
Meanwhile, Rekomendasi Saham Gratis is moving flat so far on Friday (18/05), shifting from green to red and back. Apparently, investors are confused whether or not to invest now (and benefit from the recent decline of Indonesian stocks) or stay away from investing as stocks may decline further in the next handful of trading days.