Today’s Outlook:

• The S&P 500 rose modestly on Wednesday, extending a strong start to the week that pushed the benchmark into the green for the year. The broad market index inched up 0.10% to close at 5,892.58, while the Nasdaq Composite gained 0.72% and ended at 19,146.81. The Dow Jones Industrial Average fell 89.37 points, or 0.21%, to settle at 42,051.06. The tentative accord between the world’s biggest economies has led investors to hope it will eventually yield a more concrete trade agreement. China and the U.S. have not yet agreed to specific terms for a deal, however, and Trump said this week that a final agreement wouldn’t happen quickly

• FIXED INCOME AND CURRENCY: U.S. Treasury yields inched higher on Wednesday as investors looked ahead to a handful of fresh economic data, including retail sales and wholesale inflation. The 10-year Treasury yield added 3.7 basis points to 4.536%, while the 2-year Treasury yield climbed 4.2 basis points to 4.059%. Investor worries about the effects of tariffs on the U.S. economy were calmer on Wednesday after inflation came in lighter than expected on Tuesday, and showed that prices had not increased massively yet. They’ll next look to see if Thursday’s producer price index report will further calm concerns tied to price pressures. Wall Street will also parse consumer spending figures on Thursday, as well as initial jobless claims. The dollar index , which measures the greenback against a basket of currencies, rose 0.06% to 101.04, with the euro down 0.06% at $1.1177. The won strengthened 0.84% against the dollar to 1,402.66 per dollar after gaining as much as 2.1%. Against the Japanese yen , the dollar weakened 0.52% to 146.71 after falling as much as 1.2% on the session. The dollar index began the week with a jump of more than 1% on Monday and hit a one-month high as the United States and China reached a deal to temporarily cut reciprocal tariffs and tamped down concerns that a trade war between the world’s two biggest economies could lead to a global recession. But the greenback fell on Tuesday after a gauge of consumer prices was below economists’ expectations as declining food costs partially offset rising rents.

• EUROPE: Closing out the day in markets, the pan-European Stoxx 600 index ended 0.24% lower to snap a four-session winning run that has put it comfortably above its level in early April when U.S. tariffs were announced. Despite nudging into the green at some points on Wednesday, the U.K.’s FTSE 100 closed 0.2% lower, while Germany’s DAX and France’s CAC 40 were both down 0.47%. On Thursday we’ll be watching U.K. economic growth data, U.S. President Donald Trump’s Middle East tour, and earnings from companies including Chinese retailer Alibaba and Germany’s Siemens.

• ASIA: Japan’s benchmark Nikkei 225 slipped 0.14% to close at 38,128.13 giving up gains after four consecutive positive sessions. South Korea’s Kospi rose 1.23% to close at 2,640.57. Australia’s benchmark S&P/ASX 200 was up 0.13% to close at 8,279.6. Hong Kong’s Hang Seng Index rose 2.3% to close at 23,640.65 while mainland China’s CSI 300 rose 1.21% to close at 3,943.21. Asia-Pacific markets were mostly higher Wednesday as investors assess U.S.-China trade talk, after key Wall Street benchmarks rose on easing trade tensions between the two global economic superpowers.

• COMMODITIES: Gold prices dropped more than 2% on Wednesday, hitting an almost five-week low, as rising trade optimism boosted risk appetite, leading investors to shift away from bullion. Gold prices slipped to its lowest since April 11, shedding 2.1% to $3,188.52 an ounce. Bullion fell as low as $3,174.62 earlier in the session. The global relief rally sparked by the steep reduction in U.S.-China tariffs has triggered a correction through technical levels in gold. Traders now await the U.S. producer price index (PPI) data, due on Thursday, after softer-than-expected consumer data, for cues on the Federal Reserve policy path. Lower interest rates increase bullion’s appeal as it is a zero-yielding asset. Oil prices eased on Wednesday after government data showed U.S. crude oil stockpiles rose unexpectedly last week, prompting investor concerns of excess supplies. Global oil prices fell 54 cents, or 0.81%, to close at $66.09 a barrel. U.S. West Texas Intermediate crude slipped 52 cents, or 0.82%, to settle at $63.15. Both benchmarks, which traded close to their highest in two weeks in the previous session, lifted by a temporary cut in U.S.-China tariffs, fell after data from the Energy Information Administration showed crude stockpiles rose by 3.5 million barrels to 441.8 million barrels last week. Net U.S. crude imports rose last week by 422,000 barrels per day, the EIA said. API industry data also showed a large build of 4.3 million barrels in crude stocks last week.

• JCI rallied +2.15% to 6979.88, after the easing of tariff war and decreasing of reciprocal tariff and negotiation between US and China that took place in Geneva, Switzerland. We see the 7000 mark to be a positive number and psychological resistance that is quite challenging and strong to break. If it does not manage to break out of the area, prepare for a potential pullback / retrace to the next support.

Company News

• MIDI: Signed IDR 200M Lawson Share Sale
• ENRG: Discovered Oil Reserves
• OMED: Recorded Revenue and Profit Increase in 1Q25

Domestic & Global News
Gapki’s response after Sri Mulyani raised CPO export levy to 10%
Japan’s auto sector loses US$19 billion to Trump’s tariffs

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