Jakarta, CNBC Indonesia– Domestic financial markets were devastated this week in line with global pressures and the release of disappointing economic data.
The Composite Stock Price Index (JCI) this week closed at 6,794,328, falling 1.70%. JCI also fell 3.53%point-to-pointin a week.
At the close of trading yesterday (1/7/2022) the rupiah was at Rp 14,935/US$, down 0.27% on the spot market. In a week, the rupiah weakened 0.61%. In addition, the rupiah also recorded a 4-week decline in a row with a total of around 3.5%.
Meanwhile, haThe price of the majority of government bonds or Government Securities (SBN) closed higher on Friday (1/7/2022) trading this weekend, indicating that investors tend to be worried about global macroeconomic conditions.
A number of agendas and announcements of economic data will still be issued next week which could have a major impact on market movements.
Among the important data that will be released next week are the minutes of the meeting Federal Open Market Committee(FOMC)the announcement of unemployment data in the United States (US), as well as Indonesia’s foreign exchange reserves (cadev).
On Tuesday (5/7/2022), Australia’s central bank (RBA) will announce their monetary policy.
The RBA has raised its benchmark interest rate by 25 bps in May and 50 bps in June to 0.85%. This is the first time in 12 years that the RBA has raised its benchmark interest rate for the second month in a row.
On Wednesday next week, the US will also publish data on the number of jobs for May. Meanwhile, non-farm payrolls data and unemployment figures for June will be announced on Friday next week.
These data will be the handle of the US central bank (The Federal Reserve / Fed) in determining the benchmark interest rate.
The US unemployment rate stagnated at 3.6% in May, the lowest level since February 2020.
On Thursday morning next week, the Fed will also issue the minutes of the FOMC meeting that was held last month. The minutes are expected to provide clearer clues about the direction of the Fed’s policy after September.
The Fed has raised its benchmark interest rate by 150 bps this year, including 50 bps in June.
Markets expect the Fed to raise interest rates again in July as US inflation skyrocketed to 8.6% in May this year.
On Thursday, Bank Indonesia will also issue data on regional reserves as of the end of June. Indonesia’s Cadev continues to decline from US$ 141.4 at the end of February to US$ 135.6 billion at the end of May. Cadev was depleted to maintain the stability of the exchange rate which continued to be depressed, especially in the last month.
On Thursday next week, Indonesia will also host a meeting of foreign ministers of all members of the G-20. This meeting became important in the midst of the Russo-Ukrainian war.
It will be interesting to wait whether the meeting will produce an important agreement among the G-20 members in quelling the war.
On Friday next week, Bank Indonesia will issue the June 2022 Consumer Survey data.
The Consumer Confidence Index (IKK) in May 2022, was recorded at 128.9. This is the highest record in history.
The high IKK was driven by the celebration of Eid al-Fitr in early May. After reaching the peak in May, it will be interesting to see if Indonesian consumers are still very optimistic about the future economy.
Indonesia relies about 56% of its economic growth on household consumption, so consumer confidence will be very important in maintaining growth.
CNBC INDONESIA RESEARCH TEAM
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