Week IV February 2020 Latest Published and Economic Events Color the movement of regional and domestic markets in the past week. Dri summarized a number of main points that were considered to affect market performance, as follows: Negative sentiment came from the market movement last week, the Asian stock exchange contracted due to the concern of market participants related to the spread of COVID-19. In addition, the rupiah exchange rate weakened at the level of Rp 14,319 per USD at the end of trading on February 28, 2020, the panic of the market related to Covid-19 was still a trigger for the weakening of the rupiah against the US dollar. A number of new cases occurred outside China and spread across 35 countries, a total of 2,490 people outside the Chinese plains have been infected with Covid-19. Some countries with a surge of Covid-19 infections, South Korea, have found 893 positive cases of Corona, Italy 229 cases and Iran 61 cases. Indonesian economy From domestic, the Danareksa consumer confidence index in February 2020 is stable at the level of 102.5 %. Consumer assessment of economic, business and employment conditions currently increases, meanwhile the estimated economic, business and family income for the next 6 months has decreased. Consumers are worried about rising inflation following the increase in a number of components such as food prices, BPJS contributions and cigarettes. Japanese economy From the Japanese economy, the Central Bank of Japan (Bank of Japan) announced to maintain short -term interest rates of -0.1% and maintain the target of government bond yields (10 -year Japanese Government Bond Yield) in the range of 0% at a January meeting. BOJ also raised Japanese economic growth projections from 0.7% to 0.9% for the 2019 fiscal year. From the labor side, unemployment in Japan in January increased 2.4% Mom when compared to the previous month of 2.2% Mom. Meanwhile, Japan`s Jobs-to-Applications Ratio fell sharply at the level of 1.49% which was the lowest level since May 2017. Japanese retail sales shrank 0.4% yoy in January 2020, following the decline that occurred in December 2019 was 2.6% yoy. Sales down for general goods, clothing and accessories, motorized vehicles, machinery and equipment. On the other hand, the increase in sales occurs in food and beverages, fuel and toilet equipment. From the housing sekor, the number of housing starts in Japan has fallen by - 10.1% yoy in January 2020 after the previous buian has decreased by - 7.9% yoy. For Japan this is the seventh decline since July 2019. European economy From the European economy, the business confidence index in Europe remains at the -0.04 level in February 2020. In addition, the Economic Sentiment Indicator (ESI) increased 0.9 when compared to the previous month to 103.5. This level is the highest since May 2019 and is above the market consensus of 102.8. Confidence increases among producers, service providers, and consumers, while a decline in beliefs occurs in contractors and retailers. Chinese economy From the Chinese economy, Caixin PMI fell to the level of 40.3 in February from previously at level 51.1. This is the first deepest contraction for China after July 2019. The outbreak of Covid-19 paralyzed the Chinese supply chain, the value of exports declined sharply due to restrictions on goods from China to export destination countries. In addition, the value of output, new demand, and jobs has decreased sharply which has been recorded since 16 years ago. United States economy Personal income from January 2020 in the US increased 0.6%compared to the previous month by 0.1%, the growth of personal income was above the market consensus of 0.3%. Growth in personal income in the US is driven by an increase in worker compensation and payment of social security allowances and other government allowances. Meanwhile the average personal spending in January rose by 0.2% lower when compared to the previous month 0.4% and the market consensus was 0.3%. Consumption of non-durable goods drops 0.2% compared to the previous month which increased by 0.6%. On the other hand, the expenditure of durable goods (durable goods) increased 0.6% compared to the previous month which slowed -0.4%, an increase occurred by the purchase of motorized vehicles. January personal spending in January rose 0.1% (USD 12.9 billion), the increase was the same as the previous month 0.1%. The order of durable goods that received the manufacturer in January 2020 dropped 0.2% Mom when compared to the previous month which increased 2.9% Mom. This was driven by a decline in the demand for transportation due to a decline in motor vehicle orders and spare parts and a decrease in orders for military aircraft and their parts. Meanwhile, commercial aircraft orders have increased orders compared to the previous month whose orders are declining. From the US housing sector, the average price of a house (single family house) which is guaranteed with a mortgage in America increases 0.6% mom from December 2019. Home sales (Single Family House) in January increased 7.9% compared to the previous month, the average sales of 764 thousand were above the market consensus of 710 thousand units. The average price of new houses rose to USD 348,200 from the previous USD 305,400 last year. New home sales in the US from year to year increased by 18.6%. In addition, the home sales contract (pending home sales) grew 5.7% yoy in January 2020, higher when compared to the December 2019 by 4.1% yoy. Home sales contracts tend to increase in all US regions. USA: Markit Manufacturing, ISM Manufacturing, Factory Orders, Trade Balance, Unemployment Rate Japan: Jibun Bank PMI, Consumer Trust Index, China: Caixin PMI, Manufacturing PMI EU: Markit Manufacturing PMI, Inflation rate, Unemployment Rate, Retail Sales Indonesia: Source Inflation: Danareksa Research Institute Photo by kolar.io on unssplash