Today’s Outlook:
• US MARKET : U.S. stock indices closed lower on Wednesday. The Dow Jones fell 42 points, or 0.5%, the S&P 500 declined 0.5%, and the Nasdaq dropped 1%. The S&P 500 recorded its second consecutive daily loss, driven by weakness in technology stocks and underwhelming earnings performances from major banks.
Technology shares, which had fueled the early-year rally, pulled back amid profit-taking. Investors also turned cautious ahead of TSMC’s earnings release, widely viewed as a bellwether for the semiconductor industry. U.S.-listed TSMC shares fell more than 1%.
Market sentiment deteriorated further after President Donald Trump imposed a 25% tariff on imports of certain advanced computing chips, alongside reports of restrictions on Nvidia’s sales in China. Additional pressure came from reports that China banned the use of U.S.- and Israel-made cybersecurity software, sending Broadcom shares down more than 4%.
Oracle shares plunged over 4% after the company was sued by bondholders over losses linked to its artificial intelligence expansion.
• EUROPEAN MARKET : European stocks traded mixed on Wednesday as investors monitored scheduled discussions regarding Greenland’s future. Germany’s DAX fell 0.4%, France’s CAC 40 slipped 0.2%, while the UK’s FTSE 100 rose 0.5%.
Geopolitical concerns continued to dominate sentiment. Investor attention was focused on a meeting between U.S. Secretary of State Marco Rubio and officials from Greenland and Denmark, following repeated statements by U.S. President Donald Trump expressing interest in “acquiring” the semiautonomous Danish territory. Trump has argued that U.S. ownership of Greenland is necessary to prevent Russia or China from controlling the strategically located, mineral-rich Arctic region. While Greenland and Denmark have stated the territory is not for sale, Trump has not ruled out the use of force.
• ASIAN MARKET : Japanese stocks led gains across Asia on Wednesday, hitting fresh highs amid optimism over additional fiscal stimulus from Tokyo. The rally was fueled by speculation of a snap election, after reports suggested Prime Minister Sanae Takaichi may dissolve parliament, increasing expectations for expanded stimulus measures. The yen weakened to its lowest level in nearly two years, supporting export-oriented stocks.
In contrast, Chinese stocks reversed earlier gains after Beijing tightened margin financing rules, offsetting advances in chip stocks and positive sentiment from strong December trade data. Other Asian markets traded mostly flat, as the tech-led rally in South Korea began to cool.
• COMMODITIES : U.S. oil prices fell more than USD 1 in early Asian trading on Thursday after President Donald Trump said violence related to Iran’s crackdown on nationwide protests was easing. The comments reduced concerns over supply disruptions and potential U.S. military action against Iran.
WTI traded at USD 60.78 per barrel, down 2%, after giving back gains of more than 1% from the previous session following Trump’s remarks
• INDONESIA : The JCI closed with a breakout above the key psychological level of 9,000, rising 0.94% to 9,032.58. Market liquidity remained concentrated in BUMI shares. When several conglomerate stocks declined, BUMI’s weakness triggered broader selling pressure across other conglomerate names.
For investors holding conglomerate and uptrend stocks that remain above the 20-day moving average (MA20), this level can be used as a trailing stop reference. Portfolios with exposure to nickel, KBMI 1 banks, and general insurance stocks should maintain strict trailing stops due to elevated volatility. Nickel prices have rebounded, increasing the likelihood of gains in nickelexposed stocks today, including NCKL, ANTM, HRUM, INCO, NICL, and DKFT.
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