- United States initial jobless claim dropped to 385,000 in the week ended May 29, from 406,000 in the previous week.
- The ADP National Employment Report recorded an increase in monthly nonfarm private employment from 654,000 in April to 978,000 in May.
- In an effort to rescue ailing national flag carrier Garuda Indonesia, State-Owned Enterprises Minister Erick Thohir proposes a temporary halt on open sky policy – reducing the number of airports available for foreign airlines – during the pandemic.
- Erick claimed that the proposal has been discussed with the Transportation Ministry.
- Erick’s proposal is at odds with the ASEAN Open Skies policy, also known as the ASEAN Single Aviation Market (ASEAN-SAM), implemented since 2015 by 10 ASEAN countries to increase regional connectivity.
We expect improving US labor market to boost the current positive sentiments in the stocks market. With US inflation expectation stabilizes around the range of 2.20-2.40%, a report on improving US labor market is unlikely to cause a sudden surge in US Treasury yield. Hence, the Rupiah will remain stable in the near future.