Today’s Outlook:
• The S&P 500 and the Nasdaq Composite slid about 0.6%, weighed down by a decline of more than 2% in Nvidia. A regulator in China said it was investigating the chip giant over possible violations of the country’s antimonopoly law. Other tech giants ended the session lower, including Meta Platforms, Amazon and Netflix. On the economic report front, the National Federation of Independent Business’s small business survey is due on Tuesday morning.
• MARKET SENTIMENT: Australia RBA December Interest Rate Decision, Germany November CPI, Canada BoC Interest Rate Decision, US Crude Oil Inventories, US 10-Year Note Auction, Switzerland 4Q24 SNB Interest Rate Decision, Europe December Deposit Facility Rate, ECB December Interest Rate Decision, US Initial Jobless Claims, US November PPI, UK October GDP.
• ASIA MARKETS: Hong Kong’s Hang Seng index jumped nearly 3% in its final hour of trade, after china vowed “more proactive” fiscal measures and “moderately” looser monetary policy next year to boost domestic consumption. The announcement came from an official readout of a key policy meeting that outlined upcoming economic priorities. Prior to the news, mainland China’s CSI 300 index fell 0.17% to close at 3,966.57 after China’s consumer price growth came in below expectations in November. Elsewhere in the Asia-Pacific, markets were mixed as traders assessed revised economic growth data from Japan and South Korea’s political situation. South Korea’s Kospi stock index fell after President Yoon Suk Yeol survived an impeachment vote over the weekend as the fallout from his brief declaration of martial law continues to roil the country.
• CURRENCY & FIXED INCOME: The dollar was up slightly in skittish trading on Monday as investors awaited U.S. inflation data later this week, while the Australian and New Zealand dollars rallied after China pledged an “appropriately loose” monetary policy next year. While markets have priced in a quarter-point interest-rate cut by the U.S. Federal Reserve next week as a near certainty, investors are waiting for U.S. consumer price data on Wednesday. The 10-year U.S. Treasury yield edged higher on Monday ahead of key economic data out later this week. The yield on the 10-year Treasury rose more than 4 basis points to 4.195%, regaining some ground after losing steam last week. The 2-year Treasury yield was also up more than 2 basis points at 4.122%. Yields and prices moved inversely to each other, and one basis point equals 0.01%.
– The dollar rose 0.44% versus South Korea’s won . Over the weekend, South Korean President Yoon Suk Yeol survived an impeachment vote in parliament prompted by his short-lived attempt to impose martial law last week.
– European stocks continued their positive run on Monday, as investors weighed Chinese stimulus measures and geopolitical turmoil. The pan-European Stoxx 600 closed higher for an eighth straight session, moving past earlier choppiness to record a 0.14% gain. It is the longest stretch in the green for the regional index since May. China’s leaders on Monday vowed “more proactive” fiscal measures and “moderately” looser monetary policy for next year, moves which could boost domestic consumption.
– The major event this week is the U.S. consumer price index report, which is due Wednesday and could influence how the Federal Reserve proceeds on interest rates at its Dec. 17-18 meeting. Economists polled by Dow Jones forecast that headline inflation rose 0.3% in November and 2.7% over the prior 12 months.
• COMMODITIES: Oil prices climbed more than 1% on Monday as top importer China flagged its first move toward a loosened monetary policy since 2010 aiming to bolster economic growth, state media reported citing a Politburo meeting. Brent crude futures were up USD1.02, or 1.43%, to close at USD72.14 per barrel. U.S. West Texas Intermediate (WTI) crude futures gained USD1.17, or 1.74%, to settle at USD68.37. China’s growth has stalled as a collapse in the property market has hit confidence and consumption. China’s slowdown was a factor behind oil producers group OPEC+ last week deciding to postpone its plans for higher output until April. China will adopt a “moderately loose” monetary policy, according to an official readout from a meeting of top Communist Party officials, a term it last used in 2010 when it looked to support a recovery from the global financial crisis.
– Gold prices hit two-week highs on Monday, climbing more than 1% on renewed buying of the metal by China’s central bank following a six-month hiatus, with bullishness increased by anticipation of a U.S. Federal Reserve interest rate cut next week. Spot gold gained 1.2% to USD2,665.39 per ounce. U.S. gold futures added 1.1% to USD2,688.40. The resumption of Chinese buying may support investor demand in the country. In 2023, China was the world’s largest official sector buyer of gold, but the PBOC paused its 18-month buying streak in May.
• JCI continued its rebound by 54.08 bps (+0.74%) from the low support of 7041. NHKSI RESEARCH is of the opinion JCI’s rebound will continue to form its window dressing journey in the last month of 2024. Investors/traders are advised to BUY for stocks that have rebounded from support area earlier this week. RUPIAH exchange rate is entrenched at 15,924/USD, there are hopes of “strengthening” Rupiah towards 15,600 – 15,500 at the end of this year based on the plan to cut FFR at the FOMC MEETING on 17-18 December.
Company News
• PTRO: Disclose the Allocation of Funds from the Issuance of IDR 1.5T Notes
• LPCK: Meikarta Project Acceleration, LPCK Right Issue IDR 1.48 Trillion
• WOOD & CTRA: WOOD Collaborates with Ciputra Development to Develop Project in Sidoarjo
Domestic & Global News
Minimum Wage Increases 6.5%, Textile Entrepreneurs Request 15% Tax Discount or Final VAT
Israel Carries Out Dozens of Air Strikes Across Syria, Reports Say
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