On Monday, the Indonesian stock market broke a recent three-day losing trend that had seen the Jakarta Composite Index (JCI) fall by nearly 150 points, equating to a 2% drop. Currently, the JCI hovers slightly above the 7,500 mark, although predictions suggest a negative opening for Tuesday.
The outlook for Asian markets is somewhat pessimistic, influenced by forthcoming significant economic data and earnings reports. While European markets remained mixed and relatively stagnant, the U.S. markets experienced notable declines, which Asian markets are expected to mirror. On Monday, the JCI saw a modest uptick, buoyed by strong performances in resource stocks, despite challenges in the financial sector. Specifically, the index rose by 804 points, or 0.11%, closing at 7,504.13, with a trading range between 7,450.20 and 7,540.24. Performance highlights include Bank Mandiri and Bank CIMB Niaga both declining by 1.08%, Bank Negara Indonesia falling 2.35%, and Bank Central Asia decreasing by 1.67%. Conversely, Indosat Ooredoo Hutchison rose by 0.71%, Indocement leaped 1.83%, and Energi Mega Persada surged 1.67%.
Monday's lead from Wall Street was unfavorable, with the major stock indices opening lower and continuing to decline as the day progressed, closing near the day's lowest points. The Dow Jones Industrial Average fell 398.51 points, or 0.94%, closing at 41,954.24. The NASDAQ Composite dropped 213.95 points, or 1.18%, ending at 17,923.90, and the S&P 500 decreased by 55.13 points, or 0.96%, finishing at 5,695.94. This downturn was largely attributed to investors reevaluating their expectations concerning interest rate movements. Following robust employment figures released on Friday, traders are now anticipating only a modest quarter-point reduction in interest rates at the Federal Reserve's upcoming policy meeting on November 7.
In the realm of international affairs, tensions escalated as Israeli defense forces intensified air raids on Gaza and Beirut—marking the first anniversary of Hamas' cross-border assault on Israel, which catalyzed conflict in the Middle East.
Meanwhile, oil prices experienced a significant ascent on Monday due to the growing threat of supply disruptions in the Persian Gulf amid escalating tensions in the region. November futures for West Texas Intermediate Crude rose by $2.76, or 3.71%, reaching $77.14 per barrel, marking the highest close in almost eight weeks.
