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 simply because they always got 100 % of whatever they wanted from the USA.”
Such statements cause renewed concerns concerning the breakout of the global trade war. But on the other hand, 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 possible trade war.
In 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 4.50 percent in an effort 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) because the latter remains 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.
Contrary to Indonesian bonds and the rupiah, the Analisa Berita Pasar Modal ended slightly in green territory ( .06 percent) on Wednesday (16/05) after coping with deep red territory that was touched earlier in the day. Indonesian stocks happen to be sliding significantly in the last number of weeks and now have actually become quite attractive, especially for long-term investors. Up to now in 2018 foreign investors happen to be net sellers of about USD $2.9 billion of Indonesian stocks, implying ifhvlq Indonesian equities are definitely the worst performer in Asia to date 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 increase its benchmark monthly interest (the 7-Day Reverse Repo Rate) from 4.25 % to 4.50 % in an attempt 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 would not really surprised to find out Indonesian stocks react positively to your 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 to invest now (and benefit from the recent decline of Indonesian stocks) or stay away from investing as stocks may decline further over the following number of trading days.