Today’s Outlook:

• The S&P 500 and Dow Jones Industrial Average posted a new high record on Friday, with a massive boost from the Financials sector after major banks reported strong Q3 performance while the latest Inflation data at the producer level fueled expectations for a US Federal Reserve interest rate cut in November. The Dow Jones Industrial Average rose 409.74 points, or 0.97%, to 42,863.86, the S&P 500 gained 34.98 points, or 0.61%, to 5,815.03 and the Nasdaq Composite rose 60.89 points, or 0.33%, to 18,342.94. All three major indices above posted their 5th consecutive week of gains, with the DJIA recording its best gain in 8 months.

• MARKET SENTIMENT:

– Large financial companies kicked off the FINANCIAL REPORT Season with JPMorgan Chase closing up 4.4% after reporting higher-thanexpected third-quarter earnings and raising its annual interest income projections. With earnings above analyst expectations, Wells Fargo shares also jumped 5.6%. BlackRock shares gained 3.6% after announcing that assets under management reached a record high for the third consecutive quarter. Portfolio managers see that when the financial sector performs well, it creates a soft landing. This is a positive overall sign for the economy and augurs well for earnings releases in other industries in the coming weeks.

– The US Labor Department reported US PPI was unchanged on a monthly basis in September, compared with a 0.1% increase expected by economists polled by Reuters. On an annualized basis, the producer-level price index increased by 1.8%, lower than the upwardly revised figure of 1.9% in August, meaning inflation is definitely slowing. Friday’s US PPI data followed Thursday’s US CPI reading, which was slightly higher than expected, although weekly jobless claims rose more than expected.

– The UNIVERSITY OF MICHIGAN’s October consumer sentiment index came in at 68.9, compared to analysts’ estimates of 70.8. With last week’s data above, traders remain betting with a probability of around 88% that THE FED will cut rates by 25 basis points at the November FOMC MEETING, and a 12% chance that the Fed will leave rates unchanged, according to CME FedWatch.

• EUROPE & ASIA MARKETS:

– ENGLAND GDP for Aug managed to grow as expected 0.2% mom, although on an annualized basis it only came in at 1.0% yoy, not as strong as the 1.4% expected, although it still grew 0.1% over the previous month. The culprit could be their Industrial & Manufacturing Production, some of which still fell lower than expected although the pace of decline is slowing down. Speaking of Inflation, GERMAN CPI (Sept) continued to slide below the ECB Target level of 2%, this time in Sept came in at 1.6% yoy as expected (lower than 1.9% in the previous month).

– CHINA: pledged on Saturday to significantly increase debt to revive its flagging economy, but left investors wondering about the overall size of the stimulus package. CHINA’S YUAN strengthened to 7.0669/USD on Friday evening as markets await further explanation of their arguably largest stimulus package since the COVID Pandemic. Finance Minister Lan Fo’an told a press conference that the Chinese government will help local governments address their debt problems, offer subsidies to people with low incomes, support the property market, and replenish the capital of state banks, among other measures. The lack of clear figures is sure to make investors nervous again as they wait for a clearer policy roadmap until China’s next legislative meeting, the date of which has yet to be announced. Asian markets today will also see a slew of economic indicators from China, one of which is their Trade Balance and Export – Import developments for Sept, as well as New Loans figures for the same month.

• COMMODITIES

– OIL prices fell on Friday but rose for a second straight week as traders weighed possible supply disruptions in the Middle East and the impact of Hurricane Milton on fuel demand in Florida. Brent crude fell 0.45% to settle at USD 79.04 a barrel EDT. US WTI crude fell 0.38% to settle at USD 75.56 a barrel

– GOLD prices rose in Asia on Friday, as investors digested strong U.S. producer inflation, offsetting weak labor market readings. Among industrial metals, COPPER prices rose sharply in anticipation of more cues from China on fiscal stimulus. Metals prices were supported overall by a weaker DOLLAR, which fell from a 2-month high amid bets the Federal Reserve will continue to cut interest rates in the coming months, albeit at a slower pace. However, gold remains well below its recent peak. Spot gold prices rose 1.4% to USD 2,645.6/ounce, while futures for December rose 1.4% to USD 2,662.50/ounce.

Company News

• ASII: Astra’s Car Sales Still Sluggish in September 2024
• FILM & NETV: FILM Says NETV Acquisition Could Be Completed by End of October
• ISSP: Prepare IDR 100M Maturing Notes Repayment

Domestic & Global News
Indonesia’s Electricity Tariff Considered Expensive for Data Center, Any Incentive to Attract Investment?
US to send anti-missile system and troops to Israel, Pentagon says

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