Bank Indonesia has unexpectedly raised interest rates in an effort to cushion the decline of the Indonesian rupiah. The rupiah has already lost nearly 2% against the dollar this year. To stabilize the currency, the central bank raised the benchmark interest rate to 6%, the second increase this year. Economists polled by Reuters had anticipated that rates would remain unchanged. The central bank has not ruled out further policy tightening in the face of global uncertainties.
In contrast, China has decided to maintain its benchmark loan rates for October, following recent policy support and signs of economic stabilization. The one-year loan prime rate remains at 3.45%, and the five-year benchmark loan rate remains at 4.2%.
The benchmark 10-year Treasury yield in the US has crossed 5% for the first time since 2007, reaching 5.001%. This reflects a bullish sentiment in the market and could potentially indicate a bear market in the future.
In Japan, the headline inflation rate for September has slowed down to 3% from 3.2% in August. However, this still marks the 18th consecutive month that inflation has remained above the Bank of Japan’s 2% target. Core inflation, which excludes the prices of fresh food, has also declined to 2.8% from 3.1% in August. The “core-core” inflation metric, which excludes fresh food and energy prices and is closely monitored by the BOJ, has fallen to 4.2% from 4.3% in August.
Technical analysts are observing a potential “death cross” chart pattern in six global stocks, indicating possible future selling pressure. A death cross occurs when a stock’s 50-day moving average falls below its 200-day moving average, suggesting a weakening momentum and a bearish outlook for the stock. CNBC Pro subscribers can access more information on these stocks.
Gold prices have recently rallied, reflecting a risk-averse market environment due to rising bond yields and geopolitical tensions. However, technical analyst Katie Stockton believes that gold is currently “short-term overstretched” and could experience a pullback in the coming week. She argues that the recent increase in gold prices is merely a bounce back from previous lows and that it has essentially returned to its September levels.
Pharmaceutical stocks such as Pfizer, Moderna, and Illumina have hit fresh lows on the S&P 500, along with United Airlines and Southwest Airlines. Jobless claims have also come in lighter than expected.
