Fixed Income Update 05 Dec 2024
KBVS WEEKLY FIXED INCOME UPDATE
Thursday, 5 December 2024
Trump's Tariffs Stir Global Sentiment
Geopolitical tensions escalated again throughout last week, driven by statements from Trump indicating his intention to impose tariffs on Mexico, China, Canada, and the European Union upon assuming office as President. This announcement prompted retaliatory remarks from the affected nations. Simultaneously, tensions in the Middle East intensified following the implementation of US sanctions on Iran earlier this week.
Domestically, Indonesia's monthly inflation rate rose to 0.30% MoM in Nov ‘24, keeping the annual inflation rate within Bank Indonesia's lower range target at 1.55% YoY. Meanwhile, the Nikkei Manufacturing PMI for Nov ‘24 remained in contraction territory at 49.6 (Prev: 49.2). Despite these developments, they have not significantly bolstered foreign appetite for domestic markets. Consequently, the Rupiah continued to depreciate against the US Dollar over the past week.
Regards,
KBVS Research Team