FX.co ★ Indonesia Stocks Fall to Over 2-Month Low

Indonesia's IDX Composite dropped 104 points, equivalent to a 1.5% decline, reaching 7,003 by midday on Thursday. This marked its second day of losses, hitting its lowest point in over two months. Investor sentiment remained wary following the U.S. Federal Reserve's decision to keep interest rates unchanged for the fourth consecutive meeting, while indicating the possibility of two rate reductions later this year. Additionally, the Fed's revised GDP forecasts for 2025 and 2026, which were lowered, along with heightened inflation expectations, contributed to market pressures. Further adding to market uncertainty were ongoing geopolitical tensions in the Middle East and increasing fears of potential U.S. involvement in the Israel-Iran conflict, which dampened investor optimism. Nearly all sectors experienced declines, with utilities, consumer durables, technology, and financials suffering the most significant losses. Major laggards included BNI (-2.3%), Bank Mandiri (-2.3%), BRI (-2.0%), Indofood (-1.4%), and Astra International (-1.3%).