Today’s Outlook :
• US MARKET : U.S. stocks closed higher on Wednesday, although off their session highs, after the Federal Reserve minutes signaled the possibility of further interest rate hikes to curb inflation. Earlier gains were supported by a rebound in the technology sector, as well as a shift by investors into equities and out of bonds following solid economic data.
The S&P 500 rose 0.6% to 6,881.32; the NASDAQ Composite gained 0.8% to 22,753.64; and the Dow Jones Industrial Average climbed 0.3% to 49,662.66.
The meeting minutes showed that nearly all members of the Federal Open Market Committee agreed to keep the benchmark interest rate unchanged at 3.50%–3.75% in late January. However, several members opened the door to a two-sided policy option, including the possibility of rate hikes if inflation remains above target.
U.S. Treasury yields jumped amid bond sell-offs following strong economic data. U.S. industrial production in January rose 0.7% m/m (above expectations), while manufacturing output increased 0.6%— the highest in 11 months—underscoring economic resilience and supporting the Fed’s stance to keep interest rates unchanged.
• EUROPEAN MARKET : European stocks rose on Wednesday, driven by solid quarterly corporate earnings releases and U.K. inflation data showing signs of easing. Germany’s DAX gained 1.1%, France’s CAC 40 advanced 0.8%, and the U.K.’s FTSE 100 jumped 1.2%.
• ASIAN MARKET : Asian equities advanced on Wednesday, led by technology stocks—particularly in Japan—which recovered part of their earlier losses, although concerns over the impact of artificial intelligence (AI) on the sector continued to linger. Regional trading was relatively quiet as markets in China, South Korea, Hong Kong, and Singapore remained closed for the Lunar New Year holiday.
In Japan, the Nikkei 225 rose 1.1% and the TOPIX gained 1.4%, rebounding from sharp losses earlier in the week. Technology stocks were the main support after coming under pressure for weeks. Japanese markets were also helped by bargain hunting after two days of declines triggered by weak fourth-quarter GDP data. In addition, stronger-than-expected January trade data—showing a surge in key exports—provided further support.
• COMMODITIES – OIL: Oil prices jumped more than 4% on Wednesday, driven by concerns over supply disruptions amid the potential for conflict between the United States and Iran, as well as after Ukraine–Russia talks in Geneva ended without a breakthrough. Brent crude rose USD 2.93 (+4.35%) to USD 70.35 per barrel, while WTI gained USD 2.86 (+4.59%) to USD 65.19 per barrel—both the highest since January 30, after hitting two-week lows the previous day.
Earlier, prices had declined following comments by Iran’s foreign minister regarding an understanding on the basic principles of nuclear talks with Washington. However, on Wednesday, semi-official news agency Fars reported that Iran and Russia would hold naval drills in the Sea of Oman and the northern Indian Ocean. Iranian state media also mentioned a temporary partial closure of the Strait of Hormuz—a vital global oil supply route—during military exercises, with the closure lasting several hours and the status of full reopening remaining unclear.
• INDONESIA : The JCI rebounded, rising 1.19% to 8,310.23. Market flows today appear to be heading toward the commodities sector, particularly oil, in line with rising prices of oil, gold, and nickel. Several oil-related stocks are worth monitoring for fast trading opportunities. Investors are advised to remain cautious by applying tight stop-loss and trailing-stop strategies amid ongoing market volatility.
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