Today’s Outlook:
• US MARKET: Wall Street indexes mostly ended higher on Monday, with the S&P 500 and the Nasdaq Composite clocking record highs on strength in tech shares. AMD was a standout performer, rallying nearly 24% on signing a deal to supply chips to artificial intelligence major OpenAI.
Tesla Inc jumped 5.5% on optimism over a Tuesday event. Bloomberg reported that the electric vehicle maker was set to reveal a low-cost model at the event.
The S&P 500 rose 0.4% to 6,740.28 points, while the NASDAQ Composite rose 0.7% to 22,941.67 points. The Dow Jones Industrial Average fell 0.1% to 46,694.97 points.
The U.S. government remained shut down on Monday, with the Senate closing its session without reaching consensus on a spending bill. President Donald Trump said he was open to working with the Democrats on healthcare, but only if the government was allowed to reopen. Democrats had repeatedly rejected a Republican-backed spending bill, calling for the continuation of healthcare subsidies for millions of Americans. The shutdown saw disruptions in several government services, including air traffic control and disaster relief. Key nonfarm payrolls data for September, which was due last week, was also indefinitely delayed, keeping investors in the dark over the world’s largest economy. A shutdown stands to potentially disrupt economic activity, with the last shutdown— which occurred during Trump’s first term— cutting some USD 11 billion from U.S. gross domestic product. Any furloughing of federal employees also presents risks for the labor market.
• EUROPEAN MARKET: The blue-chip index FTSE 100 fell 0.2%. DAX index in Germany gained 0.1%, the CAC 40 in France dropped 1.4%.
Lecornu stepped down from his position just one day after announcing his new cabinet. The resignation came as both political allies and opponents threatened to withdraw his government within hours of the announcement. The political drama adds to France’s ongoing governmental instability. Lecornu, a close confidant of French president Emmanuel Macron, had only been appointed to the prime ministerial role last month. In response to the political developments, France’s CAC 40 index dropped sharply.
•ASIAN MARKET:Japanese stock markets rallied to record highs on Monday, while the yen weakened sharply after fiscal dove Sanae Takaichi was elected as the leader of the ruling party, setting her up to become the nation’s prime minister. At the close in Tokyo, the Nikkei 225 added 4.96% to hit a new all time high.
• COMMODITIES: Oil prices were steady on Tuesday, with sentiment toward a smaller-than-anticipated OPEC+ output hike dulled by weakening global demand and the potential for a supply glut.
Brent crude futures gained 1 cent, or 0.02%, to USD 65.48 a barrel by 0014 GMT. U.S. West Texas Intermediate crude was unchanged at USD 61.69 a barrel. Both contracts settled more than 1% higher in the previous session.
On Sunday, the Organization of the Petroleum Exporting Countries plus Russia and some smaller producers – known as OPEC+ – decided to increase its collective oil production by 137,000 barrels per day starting in November. The group has increased its oil output targets by more than 2.7 million bpd this year, equating to about 2.5% of global demand. Geopolitical factors have kept a floor under prices, with conflict between Russia and Ukraine impacting energy assets and creating uncertainty over Russian crude supply.
• INDONESIA: The JCI closed slightly higher, gaining +0.27% into the green zone at the 8,139.9 level. Keep an eye on banking stocks that are approaching oversold support areas, where current valuations appear quite attractive for accumulation. For a more aggressive stance, monitor momentum and sector rotation, as well as conglomerate stocks and those with promising narratives — with potential continued trends in several conglomerate groups such as Emtek and Salim Group’s mining trio (BRMS, DEWA, BUMI, etc.). If pullbacks continue in gold commodity-based stocks, they may offer short-term trading opportunities once signs of weakness emerge.
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