Sunday IV January 2020 The latest publications and economic events have colored the movement of regional and domestic markets in the past week. Dri summarizes a number of main points that are considered to affect market performance, as follows: The main sentiment of market drivers last week came from the decision of a number of world central banks who still maintain accommodative policies, the outbreak of the corona virus, and the pruning of the world economy prospects by the IMF. worrying about market participants, following reports from 13 countries regarding indications of this deadly virus infection. Until last weekend, this virus has caused the death toll in China as many as 56 people. IMF cut the projection of the global economy to 2.9%, 3.3% and 3.4% for 2019, 2020 and 2021. A number of positive developments include Related to the monetary policy of the majority of the more accommodative central bank, the US-China trade peace and the description of the no-deal Brexit concern. However, world economic growth is still faced with the risk of the new US-European trade war and the potential for the return of the US-China trade war. From the domestic, RDG Bank Indonesia in January 2020 decided to maintain the BL-7DRR benchmark interest at 5.00%, with a tribe Interest in deposit facility and lending facility is 4.25%, and 5.75%. Monetary policy remains accommodative and consistent with the estimated controlled inflation, maintained external stability, as well as efforts to maintain the momentum of domestic economic growth. Fitch rating institutions ranking Indonesia`s sovereign credit ratings in the BBB level investment grade, with stable prospects. In the medium term, Indonesia`s economic growth is estimated to remain good with the support of the continued development of infrastructure and the reform agenda for the second period of Jokowi`s government, one of which is Omnibus Law. Omnibus Law is expected to encourage economic growth and direct foreign investment in the medium term. Indonesia`s economic challenges in the future include the high dependence of external financing sources and low government revenue. Japan`s economy from the Japanese economy, the Bank of Japan arrested its short -term benchmark interest at the minus level of 0.1% at the January 2020 meeting, as well as maintaining a 10 -year government bond yield target in the zero percent range. BOJ also raised Japanese economic growth projections from 0.7% to 0.9% for the 2019 fiscal year. The price of goods and services at the Japanese consumer level was flat in December 2019, after rising 0.1% Mom in Buian November. Annually, Japanese inflation rate rose 0.8% yoy from 0.5% yoy in the previous month. This increase was driven by acceleration of the increase in the price of food and housing components, as well as the cost of transportation components that returned to rise. Early Japanese-F/Ash Jibun Manufacturing Bank Japan Manufacturing PMI rose to the level of 49.3 in January 2020 from the level of December 48.4. The contraction of Japanese manufacturing sector is still visible even though the decline began to slow down. New Order, Export Production and Sales Output fell at a lower level than before. Export value (-6.3% yoy) and import (-4.9% yoy) Japan in December 2019 each reached JPY 6.58 each Trillion and JPY 6.73 trillion, which brought a trade deficit widened to JPY 152.5 billion from the previous month`s deficit, JPY 85.2 billion. Industrial output fell 1.0% Mom in November 2019, following a decline of 4.5% Mom in the previous month. The biggest decline occurred in the machine manufacturer, information and communication industry, electronic equipment, manufacturer metal, electrical machinery, and steel. European economy European economy, ECB maintains a fixed benchmark rate at the level of 0%, with marginal lending facility and deposit facility respectively at the level of 0.25% and minus 0.50% at the January 2020 meeting. In line with the predictions of market participants. The Chinekari Economy of the China Economy, People`s Bank of China maintains the basic interest rates of prime rates of prime rates of 1 year and 5 years permanent at the level of 4.15% and 4.80% in January 2020. The United States economy (US) in terms of the US economy , Weekly Unemployment Allowance Claims (as of January 18, 2020) increased by 6 thousand applications to 211 thousand applications. The average 4 weekly reached 213,250 applications, or decreased by 3,250 applications from the previous week. The current economic-CEI US-CEI rose 0.1% in December 2019 to the level of 107.2, following the 0.3% increase in the previous month. Whereas for the same period, the indicator of the US economic prospects fell 0.3% to the level of 111.2, following an increase of 0.1% in the previous period. The US economic prospect tends to slow down with the decline in US manufacturing activities, although the prospects of the consumer and financial sector are still positive. Existing home sales in December 2019 grew 3.6% mom to 5.54 million units (sa annual rate), or the highest level since February 2018 and market projections (5.43 million units). Tread house sales increased 2.7% and apartments by 10.7%. Median home prices have been grazed 7.8% to USD 274,500, the highest since January 2016. Trump`s President signed a decision to increase the import tariff of a 25% steel product and a derivative aluminum product import duty of 10%. Countries that are excluded for rising derived steel import tariffs include Argentina, Australia, Brazil, Mexico and South Korea. Whereas Argentina, Australia, Canada, and Mexico, are countries that are released from additional tariffs of aluminum products. * USA: New Home Sales, Durable Goods Orders, Conference Board Consumer Confidence, Pending Home Sales, Fomc Rate Decision, GDP Annualized, Personal Income, Claims of Unemployment Allowances * Japan: Industrial Output, Retail Sales, Jibun Bank PMI * China: PMI Manufacturing, Caixin PMI * EU: Business Climate Indicator, Inflation rate, GDP SA, Markit Manufacturing PMI * Indonesia: Danareksa Consumer Confidence, Markit Manufacturing PMI Source: Danareksa Research Institute Photo by Brian Kyed On Unssplash