Today’s Outlook:

 

• US MARKET : U.S. stocks closed lower on Wednesday, with the S&P 500 down 0.5%, the Dow Jones down 0.7%, and the Nasdaq dropping 0.9%, dragged by weakness in major tech shares.

Tesla reported record quarterly revenue of USD 28.1 billion, slightly above estimates, but net profit plunged 37% due to higher R&D and tariff-related costs. The sales surge came ahead of the expiration of the USD 7,500 federal EV tax credit. Tesla shares fell 1% during regular trading and another 4% after hours. Apple shares also dropped 1.7% following reports that the company sharply reduced production of its iPhone Air model.

According to Reuters, the Trump administration is considering broad export restrictions on goods to China that contain U.S. software, in retaliation for Beijing’s rare earth export ban. The news heightened trade war concerns ahead of the upcoming Trump–Xi Jinping meeting

Market focus now shifts to U.S. inflation data due Friday, ahead of next week’s Federal Reserve meeting. The ongoing partial U.S. government shutdown, now in its fourth week, could delay important economic data releases.

 

 

• EUROPEAN MARKET: European stocks mostly declined on renewed geopolitical concerns over Ukraine. Germany’s DAX fell 0.7%, France’s CAC 40 lost 0.6%, while the U.K.’s FTSE 100 rose 0.9%

U.K. inflation held steady at 3.8% in September, below expectations of a rise to 4%. The Bank of England kept its benchmark interest rate unchanged at 4%, the lowest level in two years.

 

 

•ASIAN MARKET: Asian stocks fell after two days of gains, weighed down by tech weakness and caution over Japan’s latest economic data and the new government under Prime Minister Sanae Takaichi.

Japan’s exports rose for the first time in five months but missed forecasts, while imports jumped sharply, resulting in a trade deficit of JPY 234.6 billion (USD 1.54 billion). Takaichi pledged to continue Abenomics-style policies, but investors remain cautious due to Japan’s high public debt.

China’s CSI 300 index fell 0.2%, the Shanghai Composite edged lower, and Hong Kong’s Hang Seng index dropped 0.84% with the Hang Seng TECH subindex down 0.8%

 

• OIL:Oil prices settled higher on Tuesday, bouncing off the previous session’s five-month lows, as investors reassessed expectations of a looming glut and sought clarity on the trade dispute between the U.S. and China, the world’s two biggest oil consumers. Brent crude futures rose 31 cents, or 0.5%, to settle at USD 61.32 a barrel, while U.S. West Texas Intermediate crude futures for November delivery, which expired on Tuesday’s settlement, closed up 30 cents, or 0.5%, at USD 57.82. Both contracts had hit their lowest since early May on Monday, as record U.S. oil production and the decision by the Organization of the Petroleum Exporting Countries and allies to press ahead with planned supply hikes raised expectations of oversupply.

 

• COMMODITIES :Oil prices surged after the U.S. imposed sanctions on Russia’s two largest oil companies, Lukoil and Rosneft, over the war in Ukraine. Brent crude rose 4.9% to USD 64.35 per barrel, while WTI gained 2.4% to USD 59.92. The rally was also supported by rising U.S. energy demand.

 

• INDONESIA: The Jakarta Composite Index (JCI) closed down 1.04% to 8,152.55, entering the red zone. The index is likely to test support around the 8,000 level as it moves to fill the previous gap-up rally.

The correction in JCI followed Bank Indonesia’s decision to keep its benchmark rate (BI7DRR) unchanged at 4.75%, whereas market consensus had expected a 25 bps cut. Following the rate hold, shares of the Big 4 banks corrected, dragging the index lower.

Conglomerate Stocks Note: For conglomerate stocks, short-term or scalping trades are recommended, as current risk–reward conditions are not very attractive. There is still potential for a rebound ahead of the MSCI indexing catalyst, but risks remain elevated—close monitoring of support and resistance levels is advised.Strategy

Suggestion:A tactical play approach is recommended — focusing on sector rotation into fundamentally strong “classic” stocks such as banking, given their attractive dividend yields (banking dividend yields currently exceed bond yields). Despite challenges like loan growth and asset quality concerns, consumer and healthcare stocks (e.g., UNVR, KLBF) may serve as defensive hedging plays.

 

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