The Indonesian stock market continued its decline for the second consecutive trading day, shedding over 100 points or 1.4 percent in total. The Jakarta Composite Index (JCI) currently hovers just below the 7,225 mark, although it is expected to open higher on Wednesday.
Globally, the outlook for the Asian markets is optimistic, driven by solid earnings reports and positive sentiment regarding interest rates. While European markets experienced downturns, U.S. markets saw gains, suggesting that Asian markets may follow suit.
On Tuesday, the JCI experienced a modest decline, influenced by losses in financial shares and cement companies. The index fell by 54.57 points, or 0.75 percent, to close at 7,224.29.
Among the active stocks, Bank Danamon Indonesia rose by 1.16 percent, while Bank Negara Indonesia dropped by 0.90 percent, and Bank Central Asia decreased by 1.00 percent. Bank Rakyat Indonesia tumbled by 1.87 percent, Indocement fell by 0.34 percent, Indofood Sukses Makmur decreased by 0.42 percent, and Astra International plummeted by 2.01 percent. On the other hand, United Tractors saw a slight increase of 0.21 percent, and Vale Indonesia surged by 2.98 percent. Both Bank Mandiri and Semen Indonesia remained unchanged.
Wall Street exhibited strength, with the Dow Jones Industrial Average skyrocketing by 742.76 points, or 1.85 percent, to reach a record high of 40,945.48. The NASDAQ added 36.77 points, or 0.20 percent, to close at 18,509.34, and the S&P 500 rose by 35.98 points, or 0.64 percent, ending at a record 5,667.20.
The rally on Wall Street was fueled by positive earnings reports from companies like UnitedHealth (UNH), Bank of America (BAC), and Morgan Stanley (MS). Additionally, traders responded favorably to recent U.S. economic data, such as the Commerce Department's report indicating that U.S. retail sales remained unchanged in June. The Labor Department also reported that U.S. import prices were flat last month, while export prices declined by 0.5 percent.
Gold stocks experienced a significant surge, driven by a sharp increase in the price of the precious metal, which pushed the NYSE Arca Gold Bugs Index up by 3.4 percent to its highest closing level in more than two years.
Conversely, oil prices continued their decline for the third consecutive session due to concerns about demand outlook and a slightly stronger dollar. West Texas Intermediate (WTI) crude oil futures for August dropped by $1.15, or 1.4 percent, settling at $80.76 per barrel.
Closer to home, Indonesia's central bank is set to conclude its monetary policy meeting and announce its decision on interest rates later today. It is anticipated that the bank will keep its benchmark lending rate at 6.25 percent, the deposit facility rate at 5.50 percent, and the lending facility rate at 7.00 percent.
