The Jakarta Composite Index (JCI) opened higher on Thursday (29\nOctober 2026), at 5,305.20, up 22.89 points or 0.43% from the previous\nsession\u2019s close of 5,282.31.<\/p>\n
Trading volume stood at 17.14 million lots, with transaction value\nreaching Rp694.36 billion.<\/p>\n
Pressure on Indonesia\u2019s financial markets is expected to ease today\nafter the Federal Reserve held interest rates. However, the release of\nUS PCE inflation data and developments in the war could weigh on share\nand rupiah movements. A surge in Indonesian government bond yields will\nalso be in focus.<\/p>\n
Here are some of the day\u2019s key market drivers:<\/p>\n
The Federal Reserve (the Fed) kept its benchmark interest rate at\n3.75%-4.00%, but Thursday\u2019s (29 October 2026) decision was not\nunanimous. Two officials, Lisa Cook and Beth Hammack, supported a\n25-basis-point increase.<\/p>\n
The Fed said inflation remained high and left the door open to\nfurther rate adjustments. Chair Kevin Warsh declined to signal the\ndirection of the next policy move, while stressing that the central bank\nwas still working to bring inflation back to its 2% target.<\/p>\n
Warsh also said the US economy was strengthening, with first-half\n2026 growth revised up to 2.4%. However, high interest rates continue to\npush up borrowing costs and affect investment, including the development\nof artificial intelligence (AI) infrastructure.<\/p>\n
Markets put the probability of a rate increase in December at about\n80%. The yield on 10-year US Treasuries rose to 5.042% after the\ndecision was announced.<\/p>\n
The US is due to release its September Personal Consumption\nExpenditures (PCE) inflation data today, Thursday (29 October), at 19:30\nWIB.<\/p>\n
For context, PCE inflation was 3.4% year on year in August 2026,\nwhile core inflation was 3.0%.<\/p>\n
Core PCE inflation, which excludes food and energy, is expected to\nrise by 0.3% month on month in September 2026, up from 0.2% in August.\nAnnually, core inflation is forecast to increase to 3.1% from 3.0%.<\/p>\n
The data is important because PCE is one of the key inflation\nmeasures used by the Fed when setting monetary policy.<\/p>\n
The US will also publish jobless claims data for the week ending 24\nOctober 2026.<\/p>\n
Initial US jobless claims fell by 6,000 to 194,000 in the week ending\n17 October 2026, their lowest level since mid-July and below the market\nexpectation of 200,000, according to the US Department of Labour.<\/p>\n
The decline suggests the labour market remains solid amid economic\nuncertainty. Strong corporate earnings and resilient domestic demand\nhave helped contain a wave of redundancies.<\/p>\n
However, high energy costs resulting from the US-Israel war with\nIran, uncertainty over Federal Reserve policy and trade policy are\nclouding companies\u2019 hiring decisions.<\/p>\n
The European Central Bank (ECB) will announce its decision today at\n20:15 WIB, followed by a press conference at 20:45 WIB. The consensus\nforecast is for the main refinancing rate to remain at 2.65% and the\ndeposit facility rate at 2.50%.<\/p>\n
Attention is focused on the ECB\u2019s response to inflation risks and\nslowing growth. Any decision to hold rates needs to be considered\nalongside the bank\u2019s communication, particularly its comments on the\npossibility of further tightening and its assessment of energy cost\npressures.<\/p>\n
For global markets, a change in the ECB\u2019s tone could affect the euro,\nEuropean bonds and the dollar\u2019s relative movement. Since the\nannouncement is close to major US data releases, investors will need to\nassess the two developments together rather than in isolation.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/jakarta-composite-index-opens-0-43-higher-at-5-305-1793242239", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }