Today’s Outlook:

• The S&P 500 slid in a head-spinning session for traders as they grappled with new tariffs proposed by President Donald Trump that were in flux throughout most of Tuesday. The trade policy uncertainty has brought the benchmark to the brink of a correction, which is defined as a decline of 10% from its high. The S&P 500 ended the session 0.76% lower, falling to 5,572.07. At its low of Tuesday’s session, the index was 10% below its record close. The Dow Jones Industrial Average lost 478.23 points, or 1.14%, to close at 41,433.48. The Nasdaq Composite slipped 0.18%, closing at 17,436.10. The S&P 500 was in the green at one point during the trading session before Trump declared on Truth Social that Canadian steel and aluminum duties would double to 50% from 25%, effective Wednesday. The president made the move in response to Ontario Premier Doug Ford’s surcharge on electricity exported to the U.S. Later in the day, Ford said he was temporarily suspending the 25% surcharge after talking with Commerce Secretary Howard Lutnick. Finally, top Trump trade advisor Peter Navarro said on CNBC on Tuesday afternoon that Trump would not hike the tariffs on Canadian steel and aluminum to 50%. The 25% duty that was originally planned, however, would still take effect.

• MARKET SENTIMENT : All eyes will be on the US CPI for February as it will steer how the Fed will enact its policies under a Trump administration. Apart from Crude Oil Inventories data, 10-Year Note Auctions will also be released. In the Great White North, the Bank of Canada will be announcing its interest rate decision.

• FIXED INCOME AND CURRENCY : U.S. Treasury yields rose on Tuesday as investors awaited the latest reading on the consumer price index report. The benchmark 10-year Treasury yield was nearly 7 basis points higher at 4.278%. The 2-year Treasury yield was last 4 basis points higher at 3.937%, after earlier in the day falling to its lowest level since October. One basis point is equal to 0.01%, and yields and prices move in opposite directions. The U.S. dollar strengthened 0.53% against the Canadian dollar to C$1.4516 per dollar. It rose to as high as C$1.4521, its highest level since March 4. The U.S. dollar rose to a one-week high against the Canadian dollar on Tuesday after President Donald Trump hit Canada with more tariffs while the euro hit a new four-month peak against the U.S. currency on hopes a German defense spending deal.

• EUROPE : After a negative start to the week for global equities as U.S. growth fears weighed, the pan-European Stoxx 600 ended Tuesday down by another 1.7%. European stock markets closed lower on Tuesday, sharply extending losses as trade tensions between the U.S. and Canada escalated. Milan-listed shares of Jeep and Dodge owner Stellantis fell 5%, with the Stoxx Autos index down 2.13%, after U.S. President Donald Trump threatened to hike tariffs on cars coming into the U.S. from Canada. Stellantis has several production facilities in Canada.

– The euro rose to as high as $1.09305, its highest since November. It was last up 0.76% on the day and has gained more than 4% so far this month as Germany acts to ramp up defense spending.

• ASIA : Asia-Pacific markets slid on Tuesday, tracking losses in the U.S. following anxiety over tariff policy and a potential recession in the world’s largest economy. Japan’s Nikkei 225 ended the day 0.64% lower at 36,793.11, paring steeper losses earlier in the session. The broader Topix index, meanwhile fell 1.11% to 2,670.72. Significant losses in the Nikkei 225 were seen in imaging and network technology operator Konica Minolta, which was down 6.98% and information and communication technology company Fujitsu, which lost 4.98%. Japan’s revised GDP for the fourth quarter came in at 2.2% on an annualized basis, below economists’ expectations and the previous estimate of 2.8% growth. South Korea’s Kospi dropped 1.28% to close at 2,537.60 while the small-cap Kosdaq dipped 0.60% to 721.50. Hong Kong’s Hang Seng Index was flat in its final hour, while mainland China’s CSI 300 ended the day 0.32% higher at 3,941.42. Meanwhile, Taiwan’s Taiex index closed down 1.73% at 22,071.09, paring losses from an over 3% drop earlier in the session. Elsewhere, Australia’s S&P/ASX 200 closed 0.91% lower at 7,890.10, reversing course from gains in the previous session. Over in India, the benchmark Nifty 50 was flat, while the BSE Sensex dipped 0.20% as at 1.p.m. local time.

• COMMODITY : OIL prices settled slightly higher on Tuesday, helped by weakness in the dollar, but gains were capped by mounting fears of a U.S. economic slowdown and the impact of tariffs on global economic growth. Brent crude futures settled 28 cents, or 0.4%, higher at $69.56 a barrel after falling as low as $68.63 in early trade. U.S. West Texas Intermediate crude futures gained 22 cents, or 0.3%, to $66.25 a barrel after previous declines as well. The dollar index hit a four-month low, making oil less expensive for overseas buyers. But U.S. stock prices, which also influence the oil market, fell again, adding to the biggest selloff in months. GOLD prices rose in Asian trading on Tuesday as the dollar weakened, lingering near a four-month low amid mounting U.S. recession fears driven by President Donald Trump’s trade policies. Investors were cautiously awaiting the U.S. consumer price index (CPI) data scheduled for release on Wednesday. This data could influence the Federal Reserve’s upcoming monetary policy decision, especially amid ongoing trade tariff uncertainties. Spot Gold rose 0.4% to $2,900.17 per ounce, while Gold Futures expiring in April gained 0.2% to $2,904.50 an ounce.

• JCI continued to correct by 0.79% to 6545 after its failed breakout of dynamic resistance MA20(Yellow) @ 6636. NHKSI Research anticipates JCI to be at a sideways trend below 6500 as a solid resistance and 6000 as the next base support after breaking out of its previous solid support at 6393. Although during last 3 days JCI made a great bounce back after touched 6300 support area and several big banks also gained some net foreign buy/inflow, please mind the correction if JCI can’t break and close above 6650 resistance today.

Company News

• DCII: Surged 55 Percent, DCII 2024 Earned a Profit of IDR 796 Billion
• MFIN: Mandala Multifinance Plans to Distribute Bonus Shares
• PNBN: Pefindo Says About Panin Bank’s Outstanding Bonds

Domestic & Global News
Fitch Keeps Indonesia’s Credit Rating BBB with Stable Outlook, Here’s Why
Trump Raises Tariffs on Steel and Aluminum Imports from Canada to 50%

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