Biden 2 More Steps To Becoming US President, Indonesia Legitimizing A Recession!



[ad_1]

Jakarta, CNBC Indonesia – Domestic financial markets varied in trading Tuesday, although they had strengthened earlier in the session. The movement is influenced by the dynamics of the presidential election (pilpres) in the United States (USA).

The Jakarta Composite Index (JCI) plunged 1.05% to 5,105,199. In fact, at the beginning of the negotiation, it had strengthened by 0.55% to 5,188,009. Total registered transactions reached Rp. 8.02 trillion. Foreigners posted a net sale on the regular market of Rs 123.3 billion.


Meanwhile, the rupee managed to post a 0.21% gain at IDR 14,540 / US $, but the strengthening slowed a lot compared to the initial trade of 0.68%.
Meanwhile, from the bond market, the 10-year Government Securities (SBN) yield rose 2.8 basis points (bps) to 6.629%.

It should be noted that the yield movement is inversely proportional to the bond prices. When the price goes up, the performance will decrease, on the contrary, when the price goes down performance get on.
The US presidential election, which brought together current Republican Donald Trump and Democratic candidate Joe Biden, was fierce.

Poll results before D-Day on Tuesday, November 3, local time, showed Joe Biden’s superiority, both nationally and in the state that became battlefield because many swing voter.

The presidential election in the U.S. uses a system electoral College, where each state has a number of votes electoral different. The candidate who wins the public vote (popular vote) in that state you will get the entire electoral college, also known as winner takes all. This system is implemented in all states except Nebraska and Maine.

At the start of the quick vote count Wednesday morning, Biden’s electoral vote was far ahead of Trump’s. What strengthens the national financial market. Biden and the Democratic Party are indeed the favorites of emerging markets, because if the trade war between the United States and China is chosen, it is likely to end, corporate taxes in the United States will increase, and the fiscal stimulus will also be greater, which that can have the impact of a flow of capital into the country. emerging market like Indonesia.

But at noon, Trump’s electoral vote began. The 45th president of the United States was also moving forward in several battlefield states, although his vote count had not been completed. As a result, JCI immediately changed nyungsep, the rupee cut its strength and the SBN weakened.

President Trump even claimed victory, before the vote counting ended.

“Millions and millions of people voted for us tonight. And a very sad group of people is trying to disenfranchise that group of people. And we are not going to support it,” Trump said in the East Room of the White House. . CNBC International.

“We are preparing for the big celebration. We won everything, and suddenly everything was canceled,” he added.

Trump also plans to challenge the results of the presidential elections to the Constitutional Court to stop the vote counting. Had the counting been stopped, Trump would have won over Pennsylvania and Michigan and continued his second term.

Trump appears to intend to stop counting mail-in ballots that are legally acceptable by state boards of elections after Tuesday’s election, provided they are delivered on time.

The development of the presidential elections in the US will certainly affect the movement of the domestic financial market today, Thursday (11/5/2020), as well as the release of data on Indonesia’s economic growth that will show a recession for the first time in 22 years. How it affects them will be discussed on pages 3 and 4.

[ad_2]