The major US indexes recovered from early losses Thursday to end with modest gains. Some people might have thought it was a sort of a turning point for Indonesian market today. Well, you may just have hope. "It's not right, but it's okay," said Whitney Houston in her 1998 tune. US stocks erased early losses to finish higher Thursday, but volume tapered off modestly. This has been conventionally signaling that institutional buyers are not into the market yet.
This morning opening in key Asian market starter also confirmed the situation that investors and traders have yet to be convinced on the bulls resistance of US market last night. Last night, China's central bank announced that another increase will be made to the country's reserve requirement ratio. A bounce by the dollar above its 50-day moving average for the first time in months also left a negative trace in the market yesterday. Emerging market equities on Thursday gave up their gains for the year, with the MSCI EM index falling below its level for the start of January. Driven down by fears of a a new euro crisis, a slow down in China, stagnation in the US and frantic selling of commodities, emerging markets stocks were down at the start of trading today. China’s latest increase in bank reserve ratios - the fifth this year – was seized upon as more evidence that investors will have to contend with the dangers of a bigger-than-expected global deceleration in growth – as well as earlier fears of inflation in some countries. Will it be a bit better today for Indonesian market? Well, today is Friday when people tend to have their own cashing-in day, and the fact that global and regional market are under pressure would give more excuse for massive selling. For a few people, today's Friday is not just a usual Friday. Today is Friday, the 13th, and it marks the calendar in May when people do tend "Sell in May and Go Away". '+' [image: Headline-inflation-emerging-Asia.gif]
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