Today’s Outlook:
• MARKET SENTIMENT: U.S. stock index futures rose in evening deals on Sunday with focus turning to upcoming inflation data and a slew of Federal Reserve speakers for more signals on whether Wall Street will extend its recent rally. Wall Street was on a tear in the second half of last week after Donald Trump won the 2024 presidential election, clearing out a major point of uncertainty for markets. An interest rate cut by the Fed also boosted risk sentiment. S&P 500 Futures rose 0.2% to 6,037.25 points, while Nasdaq 100 Futures rose 0.4% to 21,306.0 points by 18:44 ET (23:44 GMT). Dow Jones Futures rose 0.1% to 44,186.0 points. Still, trading volumes are expected to be limited Monday by the Veterans Day holiday. CPI data, Fed speakers due this week
• ECONOMIC INDICATORS: There is no economic data of note expected Monday, but investors will be awaiting inflation readings due out later in the week. Ticketmaster parent Live Nation and food and facility service provider Aramark are among companies reporting earnings on Monday.
• ASIA & EUROPEAN MARKETS: Asia-Pacific markets fell Monday after China’s October inflation numbers came in lower than expected, prompting concerns over the recovery in the world’s second-largest economy, while European markets closed lower on Friday, as investors digested corporate results and quarter-point interest rate cuts from the U.S. Federal Reserve and Bank of England. The pan-European Stoxx 600 ended the session 0.66% lower, with most sectors and major bourses in closing in the red. Mining stocks led the losses, shedding 4.2%, while travel and leisure stocks ticked up 0.8%. The index ended down 0.19% on the week.
– On Monday, China kicks off its Singles’ Day — the equivalent of Black Friday in the country. A note from ING on Friday said that Singles’ Day will show how consumption was faring in China. They suspected that given the shift toward value-for-money purchases and online shopping, they’ll continue to see solid growth numbers from the event that should comfortably outpace the overall consumption growth momentum.
– Germany’s DAX index closed 0.8% lower, paring gains from the previous session, after Chancellor Olaf Scholz sacked Finance Minister Christian Lindner on Wednesday evening and appointed his successor on Thursday. The move, which brought a dramatic end to the country’s three-way coalition government, raises the possibility of an immediate no-confidence vote and new elections. Scholz has said he does not want to call a vote of confidence before mid-January.
• FIXED INCOME & CURRENCY: The 10-year US Treasury yield fell for a second day Friday, set to finish the week lower even after a big pop triggered by Donald Trump’s presidential win. The benchmark 10-year rate dipped 4 basis points to 4.29% after falling about 11 basis points in the previous session. The yields is now lower than last Friday’s level of 4.37%. The 2- year Treasury yield traded 4 basis points higher at 4.24%. Yields and prices have an inverted relationship and one basis point is equivalent to 0.01%. Meanwhile, The dollar rose on Friday and was heading for a slight weekly gain as investors evaluated the likely impact on the American economy of Tuesday’s election of Republican Donald Trump as U.S. president. Analysts expect Trump’s policy proposals — including more trade tariffs, a clampdown on illegal immigration, lower taxes and business deregulation — to boost growth and inflation. But in the near term there remains considerable uncertainty over what policies will be introduced, and whether discussion of some strategies like tariffs could be negotiating tactics.
– The US dollar index jumped to a four-month high of 105.44 on Wednesday, but has dipped since, partly due to profit taking. It was up 0.33% on the day at 104.75 on Friday and on pace for a 0.45% weekly increase.
– China’s yuan weakened after Beijing unveiled a 10 trillion yuan ($1.4 trillion) debt package on Friday to ease local government financing strains and stabilize flagging economic growth.
• The euro dropped 0.52% to $1.0748 and was headed for an 0.8% decline for the week, which saw the collapse of Germany’s coalition government on Wednesday.
• INDONESIA: October Foreign Exchange Reserves stood at USD 151.2 billion, up from September’s USD 149.9 billion. Today we will wait for the October Auto and Motorcycle Sales, and Consumer Confidence data.
Company News
• BNBR: Bakrie Group BNBR & Envision Build 200 MW Floating Solar and Wind Power Plant
• TOBA: TBS Energi Acquires Sembcorp Environment in Singapore
• KMDS: KMDS New Controller Holds Mandatory Tender IDR 473 per Share, Check Details
Domestic & Global News
Prabowo Gives Banks 6 Months to Write Off MSME Bad Debts
EU Affirms Unwavering Support for Ukraine after Trump Wins US Presidential Election
Download full report HERE.
