Sunday, 21 July 2019 | 21:48 WIB

JCI Opens Higher Ahead of The Fed Meeting

JCI Opens Higher Ahead of The Fed Meeting (inews)

JAKARTA, NETRALNEWS.COM - The Jakarta Composite Index (JCI) of the Indonesia Stock Exchange (IDX) in Jakarta on Tuesday (6/18/2019) morning has strengthened ahead of the meeting of the central bank of the United States (US), the Federal Reserve (Fed) in the middle of this week.

The JCI opened higher by 4.61 points or 0.07 percent to 6,195.13. While the 45 leading stocks or the LQ45 Index moved up 1.1 points or 0.11 percent to 981.39.

Head of Research at Valbury Sekuritas Alfiansyah in Jakarta on Tuesday said the JCI movement today will be influenced by global sentiment, especially ahead of the US central bank meeting.

"Waiting for the Fed meeting which is colored by uncertainty in the global market, can have an impact on the JCI. This global sentiment is one of the contributing factors to the potential low volatility of the JCI today," Alfiansyah said.

Ahead of the Federal Open Market Committee (FOMC) meeting this week, news about the Fed cutting interest rates has become increasingly dim. The Fed's consideration is likely not to cut interest rates, because ahead of the G-20 meeting in Japan later this month where the US and China are at least theoretically expected to reach a peace agreement regarding trade between the two countries.

In addition, the Fed is judged not to be seen as too influenced by financial markets and US President Donald Trump's criticism.

"The other side, it seems that the Fed is trying to make its decision last December to raise the FFR benchmark interest rate, it does not look like a policy mistake because of lowering interest rates again," Alfiansyah said.

Asian regional exchanges this morning included the Nikkei index, which dropped 109.16 points (0.52 percent) to 21,051.61, the Hang Seng Index weakened 0.72 points to 27,226.44, and the Straits Times Index gained 19.69 points (0 , 61 percent) to position 3,227.68.