Global Market Updates
Wall Street equities closed mixed on April 18, with the DJI inched up by +0.06%, the S&P 500 fell by -0.22%, and the Nasdaq closed down by -0.52%.
US stocks ended mostly lower on Thursday, with the S&P 500 hitting its lowest level in 1-3/4 months. Increasing T-note yields on Thursday exerted pressure on stocks. Hawkish comments from the Fed drove bond yields higher and undermined stock performance. Additionally, weakness in chip stocks for the second consecutive session dragged down the overall market.
US Treasury 10-yr yields increased by +5.0 bps to 4.64%, and 2-yr yields closed up by +5.0 bps to 4.98%. The 2-year yield spiked to nearly 5% after manufacturing data that exceeded expectations. T-yields rose further due to hawkish remarks from Fed officials, indicating the Fed's reluctance to cut interest rates.
US weekly initial unemployment claims remained unchanged at 212,000, indicating a stronger labor market than expected, as forecasts had suggested an increase to 215,000.
In March, US existing home sales dropped by -4.3% MoM to 4.19mn, slightly below the expected 4.20mn. Additionally, US leading indicators for March declined by -0.3% MoM, falling short of the anticipated -0.1% MoM decrease.
In Asia, Japan inflation rate decreased slightly to 2.7% YoY in March 2024 from February's 3-month peak of 2.8%, slight below the consensus forecast of 2.8%. The core inflation rate dropped to 2.6% YoY from its four-month peak of 2.8%, slightly below the anticipated 2.7%.
Global bond yields were mixed on Thursday; The German bond yield rose by +3.1 bps at 2.49%, the UK 10-yr gilt yield grew by +1.10 bps to 4.27% and the Japanese 10-yr JGB yield slipped by -1.40 bps at 0.87%.
Domestic Market Updates
Indonesian benchmark series of LCY government bonds closed higher on April 18, with the 10-yr benchmark yield inched down by -0.94 bps to 6.93%, while the 2-yr yield fell by -1.10 bps to 6.69%.
The IDR appreciated against the USD at Thursday’s close (USD/IDR fell by -0.28% to 16,175). The Rupiah strengthened after a period of weakness, while the DXY fell to 105.84.
In BI’s retail sales survey, retail sales in March 2024 are expected to grow, as reflected in the Retail Sales Index (IPR) reaching 222.8, marking a 3.5% YoY increase. Monthly sales are projected to rise by 4.1%, propelled by heightened Ramadan activity and preparations for Eid al-Fitr.
In Thursday's Indo-GB series trading, FR0100 and FR0059 garnered considerable interest in outright transactions, with the highest trade volumes of IDR2.83tn and IDR1.71tn, respectively. Furthermore, FR0097, FR0091, and FR0100 experienced high trading frequency.
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