Today’s Outlook:

• MARKET SENTIMENT: S&P 500 futures are near flat Thursday night as investors wondered what’s next for the market after the postelection rally wavered. Futures tied to the Dow Jones Industrial Average lost 25 points, or 0.1%. S&P 500 futures also slipped 0.1%, while Nasdaq 100 futures shed 0.2%. In extended trading, Applied Materials slid more than 5% after posting weak guidance for revenue in the current quarter. Domino’s Pizza jumped more than 7% after Berkshire Hathaway announced a new stake in the pizza chain. That action follows a losing day on Wall Street as the postelection upswing continued to show signs of fizzling. The Dow fell more than 200 points in the session, while the S&P 500 and Nasdaq Composite each slipped about 0.6%. Stocks took a leg down in afternoon trading after Federal Reserve Chairman Jerome Powell said during an event in Dallas that the central bank wasn’t “in a hurry” to cut interest rates. That comes after the Fed cut the borrowing cost last week.

• ECONOMIC INDICATORS: Investors will watch Friday for economic data on retail sales, import prices and industrial production. That caps a busy week for economic data that was punctuated by releases of closely watched inflation gauges focused on consumers and producers.

• ASIA & EUROPEAN MARKETS: Asia-Pacific markets mostly fell on Thursday after the U.S. October consumer price index reading reinforced expectations that the Fed would cuts rates again in December. The CPI came in line with expectations, accelerating slightly to an annual inflation rate of 2.6%. Core CPI, which straps out volatile food and energy prices, gained 3.3% last month, also matching expectations. Hong Kong’s Hang Seng index led losses in the region, down over 2% as of its final hour of trade, extending a multi-day losing streak that has seen the index lose 4% this week as of Wednesday’s close. Hong Kong’s markets remained open even as authorities issued a Typhoon warning, marking the first such occasion since the city changed the rules to allow trading in extreme weathers. Mainland China’s CSI 300 also tumbled 1.73% to finish at 4,039.62. European markets closed higher on Thursday as traders digested a slew of earnings and assessed fresh inflation data for a signal on the possible trajectory of interest rate cuts. The pan-European Stoxx 600 provisionally ended the day 1.08% higher, with all sectors and major bourses trading in the green. Tech stocks led gains, up 3.13%, while autos and oil and gas both added around 1.7%. Regional bourses also widely rose Thursday, with France’s CAC 40 adding 1.3% and Germany’s DAX rising 1.26%. The U.K.’s FTSE 100 was 0.51% higher at the end of the trading day.

– On Friday, Investors will watch Friday for economic data on retail sales, import prices and industrial production. On the earnings front, e-commerce giant Alibaba is due to report quarterly results on Friday.

– Crude oil futures edged higher on Thursday, though the U.S. benchmark closed below $69 per barrel, as a large surplus is expected in 2025. Global crude supplies are expected to outstrip demand by more than 1 million barrels per day next year led by robust growth in the U.S., according to the International Energy Agency’s monthly market report. OPEC on Tuesday cut its demand growth forecast for the fourth month in a row earlier this week. Oil prices have fallen more than 4% since Donald Trump won the U.S. presidential election as the dollar has surged. A stronger greenback can depress oil demand among buyers that hold other currencies.

• FIXED INCOME & CURRENCY: The 10-year Treasury yield hovered near a 4-month high on Thursday after Federal Reserve chair Jerome Powell indicated that the central bank is in no hurry to slash interest rates. The 10-year Treasury yield sat near flat at 4.449%, near its highest point since July. The yield on the 2-year Treasury added around 7 basis points to 4.353%. Yields and prices move in opposite directions. One basis point equals 0.01%. The moves followed Fed Chair Jerome Powell’s speech in Dallas Thursday, where he told business leaders the cenral bank doesn’t need to quickly cut interest rates. The Fed last week lowered its benchmark borrowing cost a quarter percentage point, and traders see it probably cutting rates a similar amount in December.

– The U.S. dollar strengthened against major peers on Thursday, trading at a one-year high and headed for a fifth straight session of gains, propelled by market expectations since Donald Trump clinched a dramatic return to the White House. Markets anticipate that the incoming Trump administration will impose trade tariffs and tighten immigration as well as deepen the deficit, measures deemed to be inflationary.

– Japanese yen weakened below 156 against the greenback, marking its lowest level in four months. It was last traded at 155.94 against the dollar as The president-elect’s Republican Party will control both houses of Congress when he takes office in January, giving him wide powers to push his agenda. The greenback climbed above 156 yen for the first time since July

– The Australian dollar fell to a three-month low after marginally weaker jobs data, weakening to as low as $0.6453 after Australia’s unemployment rate remained steady in October at 4.1%, as economists had expected, while the number of employed people increased 15,900 from a month ago, falling short of the expected 25,000. The participation rate, which measures the share of working-age people currently employed or seeking a job, stood at 67.1%, slightly below an estimated 67.2%.

• INDONESIA: After meeting the US and Chinese heads of State, Prabowo met with the Prime Minister of Australia Anthony Albanese in Peru to discuss deepening diplomatic ties with our Pacific neighbors. With the weakening optimism portrayed by the lowering Consumer Confidence Index, Car Sales, and Retail Sales numbers posted earlier this week, more FDI and Net Export is needed to boost economic strength and offset the waning household spending as we approach the dawn of 2025.

Company News

• BUMI: Bumi Resources will Hold Private Placement, Remember the Schedule
• MLBI: Multi Bintang Distributes Interim Dividend of IDR 190 per Sheet
• AMAN: Open Opportunities for Singapore Investors to Invest in Sidoarjo Halal SEZ

Domestic & Global News
VAT to Rise to 12% in 2025
Russia’s Food Prices Soar as a Result of War Against Ukraine

Download full report HERE.