Negative FCF Micron weighs on tech stocks, Nasdaq down more than 1%. Micron Technology shares fell nearly 4%, after projecting negative Free Cash Flow (FCF) for the 2Q22 period, due to weak demand for chips for PC and Video Games.
SUN Market Mixed Ahead of US Inflation Data. Benchmark SUN yield FR0093 is nearing the psychological 7% level, with FR0091 dropping 1.4Bps to 7.12%.
US inflation has peaked. US YoY July Headline CPI is projected to slope to 8.7% (Vs. June 9.1%), due to lower fuel prices as crude oil prices decline.
Both sales and net profit of SIDO declined by 15% YoY and 35% YoY, respectively. A jump in food inflation that push the consumers to choose focus on fulfilling basic needs caused the declining demand on SIDO’s products.
The economy grew impressively, BI remained Dovish. Indonesia’s GDP 2Q22 YoY grew expansive up to 5.44% (Vs. Surv. 5.17%; 1Q22 5.01%), reassuring BI to remain Dovish and maintain the momentum of the gradual domestic economy recovery, in addition to Core CPI which was maintained below 3%YoY.
Unemployment Rate at 3.50% lowest in history, US prepares for Hard Landing. Other employment data show US Change in Nonfarm Payrolls Jul.
The economy grew impressively, BI remained Dovish. Indonesia’s GDP 2Q22 YoY grew expansive up to 5.44% (Vs. Surv. 5.17%; 1Q22 5.01%), reassuring BI to remain Dovish and maintain the momentum of the gradual domestic economy recovery, in addition to Core CPI which was maintained below 3%YoY.
SUN Benchmark Flat ahead of 2Q22 GDP Data Release. Apart from observing geopolitical tensions between China-Taiwan, investors are looking forward to the release
of Indonesia’s 2Q22 GDP data which is projected to grow 5.20% YoY (Vs. 1Q22 5.01% YoY). Benchmark SUN yield FR0091 edged up 1.2 bps to 7.19%.
UST yield inversion up to 36Bps, widest gap since 2000. Recession fears are rising again, amid BoE Rate hike to 1.75% (+50Bps) and US Change in Nonfarm Payroll Jul.
