Resurgence of new cases across the globe made for a somber tone in markets. Tokyo and the US recorded highs in daily new cases. Hong Kong will close schools again Australia restricts further incoming flights to the country.
The International Energy Agency warned that virus resurgence could derail the recovery in oil prices. West Texas Intermediate falls below US$ 40 while the 10-year US treasury yield is now below 0.60%. The Yen strengthened by 0.4% against the US Dollar while the greenback was bought in this time of risk-off against the other currencies. USD/CNY back above 7.00 again.
USD/IDR closed above 14,500 as the US Dollar strengthened as a safe haven and the IDR contends with three issues: debt burden sharing between Ministry of Finance and Bank Indonesia, USD demand onshore for dividends, and the number of domestic coronavirus cases.
Onshore interbank IDR market liquidity continues to be flush around IDR 152 trillion and overnight IDR money-market rates now between 3.65%- 3.90%. The Minister of Finance’s statement that the government might consider moving government funds from their Bank Indonesia account to private banks in addition to SOE banks also adds pressure to short-term interest rates amidst soft loan growth. Bank Indonesia will meet for their monthly meeting next week and the consensus expects another cut of 25 bps to bring the 7-Day Reverse Repo rate to a record low of 4.00%.
As of today, positive new cases in Indonesia reached 72,347 with 3,469 deaths.
Market close on 10 July 2020 Market close on 10 July 2020 at 3.45 PM
Nikkei : 22,290.81 (-1.06%) USD/JPY : 106.81/ 106.83
JCI : 5,031.26 (-0.43%) EUR/USD : 1.1285/1.1287
ID 10Y yield : 7.018% USD/IDR : 14,525
Market close on 9 July 2020
DJI : 25,706.09 (-1.39%)
US 10Y yield : 0.598%
Alia Fatmawati, Amanda Kinantya, Amelia Damayanti, Arfilia Amanda,
Argo Aji Nugroho, Caroline Pandea, Dicky A Abdurrahman, Dimas Satya M., Elvinawaty, Evi Nurul Arafah, Kristian Yusak Djumali, Mirawati Pranoto, Muhammad Fajrin, Natasya Ihza, Palmella Putri, Ririn Virgiyanthi, Ronal Murni, Rudy Sugiharto, Topik Hidayat, Victoria Wikan,
The above information is elaborated from reliable sources and presented without any responsibility of MUFG Bank, Ltd-Jakarta branch
This report has been prepared by MUFG Bank, Ltd (the “Bank”), for general distribution. It is
and is not intended for use by any person in any jurisdiction which restricts the distribution of this report. The Bank and/or any person connected with it may make use of or may act upon the information contained in this report prior to the publication of this report to its customers.
Neither the information nor the opinion expressed herein constitute or are to be construed as an offer or solicitation to buy or sell deposits, securities, futures, options or any other financial products. This report has been prepared solely for informational purpose and does not attempt to address the specific needs, financial situation or investment objectives of any specific recipient. This report is based on information from sources deemed to be reliable but is not guaranteed to be accurate and should not be regarded as a substitute for the exercise of the recipient’s own judgment. This report is based upon the analysts’ own views, therefore does not reflect the Bank’s official views. Historical performance does not guarantee future performance. The Bank and/or its directors, officers, and employees, from time to time, may have interest and/or underwriting commitment in the relevant securities mentioned herein or related instruments and/or may have a position or holding in such securities or related instruments as a result of engaging in such transactions. Furthermore, the Bank may have or have had a relationship with or may provide or have provided corporate finance or other services to any company mentioned herein. All views herein (including any statements and forecasts) are subject to change without notice and none of the Bank, its head office, branches, subsidiaries and affiliates is under any obligation to update this report. The information contained herein has been obtained from sources the Bank believed to be reliable but the Bank does not make any representation or warranty nor accept any responsibility or liability as to its accuracy, timeliness, suitability, completeness or correctness. The Bank, its head office, branches, subsidiaries and affiliates and the information providers accept no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of this report. This is not MUFG Bank’s official research published by Global Markets Research (GMR).
The Bank retains copyright to this report and no part of this report may be reproduced or re-distributed without the written permission of the Bank. The Bank expressly prohibits the distribution or re-distribution of this report to Private Customers, via the Internet or otherwise and the Bank, its head office, branches, subsidiaries or affiliates accepts no liability whatsoever to any third parties resulting from such distribution or re-distribution.