Today’s US dollar strength is attributed to benchmark 10-year US treasury yields hovering near their highest level in seven years. Meanwhile, the latest 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 since they always got one hundred percent of whatever they wanted from the USA.”
Such statements cause renewed concerns regarding the breakout of any global trade war. But on the contrary, 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 prospective trade war.
At the May 2018 policy meeting (concluded on Thursday) Indonesia’s central bank (Bank Indonesia) decided to raise its benchmark rate of interest by 25 basis points to 4.fifty percent in order to reduce heavy pressures on the rupiah.
Another issue – the one that is giving rise to geopolitical concerns – is definitely 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 using the USA. Serious doubts have recently emerged on if 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 as well as the rupiah, the Analisa Berita Pasar Modal ended slightly in green territory ( .06 percent) on Wednesday (16/05) after recovering from deep red territory which was touched earlier inside the day. Indonesian stocks have already been sliding significantly within the last number of weeks now have actually become quite attractive, particularly for long term investors. Up to now in 2018 foreign investors have 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 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 monthly interest (the 7-Day Reverse Repo Rate) from 4.25 % to 4.fifty percent in order to secure 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 find out Indonesian stocks react positively to some 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 if you should invest now (and benefit from the recent decline of Indonesian stocks) or stay away from investing as stocks may decline further in the next couple of trading days.