Today’s US dollar strength is attributed to benchmark 10-year US treasury yields hovering near their highest level in seven years. Meanwhile, the newest 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 100 % of whatever they wanted from the USA.”
Such statements cause renewed concerns about the breakout of a global trade war. But on the other hand, the EU vowed that it is prepared to negotiate opening its markets wider to US imports – including car shipments – in a bid to avert a potential trade war.
In the May 2018 policy meeting (concluded on Thursday) Indonesia’s central bank (Bank Indonesia) chose to raise its benchmark interest rate by 25 basis points to 4.50 % in order to reduce heavy pressures on the rupiah.
Another issue – the one that 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 continues to be engaged in military exercises with all the USA. Serious doubts have finally emerged on if the historic summit with North Korean leader Kim Jong Un and US President Donald Trump goes-ahead as planned on 12 June 2018.
As opposed to Indonesian bonds as well as 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 had been touched earlier in the day. Indonesian stocks have already been sliding significantly over the past couple of weeks and now have actually become quite attractive, particularly for long term investors. So far in 2018 foreign investors happen to be net sellers of approximately USD $2.9 billion of Indonesian stocks, implying ifhvlq Indonesian equities would be the worst performer in Asia so far this coming 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 raise its benchmark interest rate (the 7-Day Reverse Repo Rate) from 4.25 % to 4.fifty percent in order to keep the Indonesian rupiah which has been under heavy pressure in recent weeks. In theory a rate hike is negative for stocks. However, we may not really surprised to view Indonesian stocks react positively to some rate hike tomorrow.
Meanwhile, Rekomendasi Saham Gratis is moving flat to date on Friday (18/05), shifting from green to red and back. Apparently, investors are confused whether or not to invest now (and make use of the recent decline of Indonesian stocks) or avoid investing as stocks may decline further in the next couple of trading days.