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 because they always got one hundred 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 is ready to negotiate opening its markets wider to US imports – including car shipments – in a bid to avert a potential trade war.
On the May 2018 policy meeting (concluded on Thursday) Indonesia’s central bank (Bank Indonesia) decided to raise its benchmark interest rate by 25 basis points to 4.fifty percent in an effort to reduce heavy pressures on the rupiah.
Another issue – one which is giving rise to geopolitical concerns – is the news that North Korea canceled high-level talks with neighboring South Korea on Wednesday (16/05) since the latter is still involved in military exercises with all the USA. Serious doubts have recently emerged on whether the historic summit with North Korean leader Kim Jong Un and US President Donald Trump should go-ahead as planned on 12 June 2018.
In contrast to Indonesian bonds and also the rupiah, the Analisa Berita Pasar Modal ended slightly in green territory ( .06 percent) on Wednesday (16/05) after dealing with deep red territory which had been touched earlier in the day. Indonesian stocks happen to be sliding significantly over the past number of weeks and now have actually become quite attractive, especially for long term investors. To date in 2018 foreign investors have already been net sellers of approximately USD $2.9 billion of Indonesian stocks, implying ifhvlq Indonesian equities are definitely the worst performer in Asia to date this season.
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 % in an attempt to secure 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 see Indonesian stocks react positively to your rate hike tomorrow.
Meanwhile, Rekomendasi Saham Gratis is moving flat up to now on Friday (18/05), shifting from green to red and back. Apparently, investors are confused whether or not to invest now (and take advantage of the recent decline of Indonesian stocks) or refrain from investing as stocks may decline further in the next couple of trading days.