Today’s Outlook:
• US MARKET : The S&P 500 closed at a fresh record high on Friday, driven by gains in Broadcom and other chipmakers. A weaker-than-expected U.S. jobs report did little to shift market expectations for Federal Reserve rate cuts later this year.
All three major Wall Street indexes advanced during the first full trading week of 2026, supported by gains in materials, industrials, and other nontechnology sectors. The S&P 500 rose 0.65% to 6,966.28, the Nasdaq gained 0.82% to 23,671.35, while the Dow Jones Industrial Average climbed 0.48% to 49,504.07.From a valuation perspective, the S&P 500 is trading at around 22x forward earnings, still above its five-year average. Investor interest has begun to rotate toward value stocks, with the S&P 500 value index up around 2% year-to-date, outperforming the growth index, which has risen 1%.On the policy front, the U.S. Supreme Court has yet to rule on the legality of President Donald Trump’s sweeping tariffs, leaving investors awaiting clarity. Meanwhile, mortgage lenders gained after Trump announced plans to purchase USD 200 billion in mortgage-backed securities to help reduce housing costs.
• EUROPEAN MARKET : European equities advanced on Friday, supported by the release of U.S. jobs data that could shape expectations for Federal Reserve monetary policy in 2026. Germany’s DAX rose 0.5%, France’s CAC 40 surged 1.4%, while the U.K.’s FTSE 100 gained 0.8%.On the data front, German industrial production grew 0.8% month-on-month in November, beating expectations for a 0.6% contraction, signaling signs of recovery in the eurozone’s largest economy toward year-end. Meanwhile, eurozone retail sales data for November, due later in the session, are expected to show consumers remain under pressure
• ASIAN MARKET : Most Asian equity markets edged higher on Friday, tracking a mixed overnight close on Wall Street, as investors remained cautious ahead of key U.S. employment data that could influence expectations for future Fed rate cuts. Market moves were generally limited, with the technology sector leading declines.
South Korea’s KOSPI was largely flat after hitting record highs earlier this week on chip-related gains, as Samsung Electronics and SK Hynix fell between 1.5% and 3%. In contrast, Japanese equities outperformed the region, supported by a weaker yen against the U.S. dollar, which improved the outlook for exportoriented companies.
In China, official data showed consumer inflation rose to its highest level in nearly three years. The CPI increased 0.8% year-on-year in December, the fastest pace in around 34 months, while monthly prices rose 0.2%. At the same time, producer price deflation eased, signaling stabilization at the factory-gate level and suggesting China may be nearing the end of a prolonged deflationary period that has weighed on growth.
• COMMODITIES : Rio Tinto’s talks to acquire Glencore and form a new global industry leader could trigger broader consolidation across the copper-hungry mining sector, while also putting pressure on BHP, currently the world’s largest miner, to respond. If successful, the deal—depending on its final value—could rank among the top 10 largest M&A transactions in history, reflecting a growing appetite for scale that may drive mega-deals in 2026.
• INDONESIA : The Jakarta Composite Index (IHSG) closed slightly lower by 0.13% at 8,936.75, once again failing to break above the psychological resistance level of 9,000. Despite the lack of a breakout, buy-on-weakness strategies remain attractive, supported by the index’s still-strong bullish momentum.
Early trading in 2026 has been underpinned by several compelling thematic catalysts, including capital increases among KBMI 1 banks (such as BNBA), strengthening capital requirements in the insurance sector, as well as oilrelated and LNG shipping stocks. From a conglomerate perspective, names that have seen limited fund inflows throughout 2025—such as Panin Group, driven by seasonal catalysts—are starting to look more attractive, especially as other conglomerates have already rallied.
Investors with exposure to nickel, KBMI 1 banks, and general insurance, as well as theme-driven portfolios, are advised to maintain trailing stops, given elevated market volatility.
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