After that this senator from Delaware is likely to fix the diplomatic tension between his country and China. Joe is known for a leader who spent ”more times in private meetings” with Chinese leaders, Xi Jinping according to TIMES. He can propose truce between the trade wars. Therefore, the free-market trade relations can emerge and of course can loosen the rigidity in supply chains around the world.
And for Indonesia, it will be beneficial for the multinational firms who depend on supply chains. It can bring value added goods to be exported and increase the aggregate income for the country. The stocks market will likely overcome the problem about this complicated supply chain market and hopefully will rise again in the first quarter in 2021.
Because this quarter Joe Biden will be sworn in as president and plans to increase fiscal stimulus when he takes office to restore the economy. This stimulus was welcomed by investors on the Indonesia Stock Exchange.
This is evidenced by the increase in JCI for 3 consecutive days on trading November 9 to November 11 at the level of 5,356 - 5,509.51 after the announcement of the Quick Count of the US Presidential Election. Even though at the close of stock trading on November 6, the JCI was still at the level of 5,335.53.
Because with this policy, it can make the amount of US Dollar money circulating more in the market. This causes the inflation rate to increase, so that the dollar value will weaken further against other currencies such as the rupiah. If this happens, investors will need to diversify their assets into investments other than US dollars, such as stocks.
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