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 since they always got 100 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 must be able 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 monthly interest 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) since the latter is still engaged in military exercises using the USA. Serious doubts have finally 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 coping with deep red territory that was touched earlier in the day. Indonesian stocks happen to be sliding significantly over the past number of weeks now have actually become quite attractive, especially for long term investors. To date in 2018 foreign investors happen to be net sellers of approximately USD $2.9 billion of Indonesian stocks, implying ifhvlq Indonesian equities are definitely the worst performer in Asia up to now 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 raise its benchmark rate of interest (the 7-Day Reverse Repo Rate) from 4.25 % to 4.50 % 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 might not really surprised to find out 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 if you should invest now (and benefit from the recent decline of Indonesian stocks) or avoid investing as stocks may decline further within the next couple of trading days.