Today’s Outlook:

• The Dow Jones Industrial Average fell for a seventh session on Friday, posting its longest run of losses since 2020. The Nasdaq Composite gained 0.12% to 19,926.72. The S&P 500 ended the session little changed, closing at 6,051.09. For the week, the Dow posted a 1.8% decline, while the S&P 500 slid about 0.6% and ended a three week winning streak. The Nasdaq rose 0.3% during the period. The moves come on the heels of a losing session on Wall Street for the three major averages. The Nasdaq Composite also broke below the 20,000 threshold.

• MARKET SENTIMENT: December S&P 500 Global US Manufacturing PMI, December S&P Global Services PMI

• ASIA MARKETS: China stocks led losses in Asia Friday as Beijing’s affirmation of its recent policy shifts and plans to boost growth, following a high-profile meeting Thursday, appeared to have fallen short of investors’ expectations. Hong Kong’s Hang Seng index fell 1.83% in its final hour of trade, while mainland China’s CSI 300 lost 2.37% and ended at 3,933.18. Most other Asia-Pacific markets also fell, tracking Wall Street declines following a hotter-than-expected producer price inflation reading. The outlier was South Korea’s Kospi, which gained 0.5% to close at 2,494.46, marking a four day winning streak, while the small-cap Kosdaq rose 1.52% to 693.73, also notching four straight winning days. Japan’s benchmark Nikkei 225 fell 0.95% to end at 39,470.44, while the broad-based Topix saw a loss of 0.95% as well and closed at 2,746.56. Investors also assessed the Bank of Japan’s Tankan survey, which showed a higher-than-expected optimism among large Japanese manufacturers.

• CURRENCY & FIXED INCOME: The dollar index, which measures the currency against six others, was up 0.037% at 107, set for a weekly gain of nearly 1%, its biggest in a month. The dollar headed for its best weekly performance in a month on Friday, as investors priced in the possibility of the Federal Reserve cutting rates more slowly next year, while sterling fell after a surprise contraction in UK economic activity.

– The U.S. currency rose against the yen after reports that the Bank of Japan could forgo a rate hike at its meeting next week. The dollar rose 0.69% to 153.695 yen , its highest since late November. The yen has been the worst performer this week against the dollar, which has gained 2% on the Japanese currency.

– European markets closed lower Friday as investors reacted to disappointing data prints from two of the region’s largest economies. The pan-European Stoxx 600 provisionally closed 0.62% lower, also recording a weekly loss after three weeks in the green. Friday’s downbeat mood followed unexpected declines in both U.K. GDP and key export data from Germany. The U.K. economy contracted by an estimated 0.1% on a monthly basis, the ONS said Friday, with officials attributing the downturn to a decline in production output. Economists polled by news agency Reuters had projected a 0.1% rise in GDP in October.

– The euro pared earlier losses against the dollar and rose 0.26% to USD1.04945. The European Central Bank on Thursday cut rates by 25 basis points and kept the door open to further easing.

• COMMODITIES: Oil prices climbed about 2% on Friday to settle at a three-week high, on expectations that additional sanctions on Russia and Iran could tighten supplies and that lower interest rates in Europe and the U.S. could boost fuel demand. Brent futures rose USD1.08, or 1.5%, to settle at USD74.49 a barrel. U.S. West Texas Intermediate crude rose USD1.27, or 1.8%, to settle at USD71.29. That was Brent’s highest close since Nov. 22 and put the contract up 5% for the week. WTI posted a 6% gain for the week and closed at its highest since Nov. 7. European Union ambassadors agreed to impose a 15th package of sanctions on Russia this week over its war against Ukraine, targeting its shadow tanker fleet. The U.S. is considering similar moves.

– Gold prices fell on Friday after bullion hit a more than five-week high in the previous session and as the U.S. dollar gained, but prices were on track for a weekly rise on expectations of a Federal Reserve rate cut next week. Spot gold was down 1.1% at USD2,652.29 per ounce, as the U.S. dollar was steady at its highest in more than two weeks. Bullion hit its highest since Nov. 6 on Thursday, and has risen over 0.8% so far for the week. Underpinned by easing monetary policies, robust central bank buying, and safe-haven demand, gold has shattered multiple record peaks this year.

• JCI continued its correction 55.15 bps (-0.94%) after reaching a peak last Thursday forming the inverted hammer candle. Investors/traders are advised to WAIT AND SEE for stocks that have been in a strong uptrend rally last week. RUPIAH exchange rate is entrenched at 15,909/USD, there are hopes of “strengthening” Rupiah towards 15,600 – 15,500 at the end of this year based on the plan to cut FFR at the FOMC MEETING on 17-18 December.

Company News

• SOHO: SOHO Entity Draws IDR750 M Loan, Examine the Allocation
• AMRT: Alfamart to Close 400 Outlets Throughout 2024, Here’s Why
• EMTK: Emtek’s Frontman to Grab Shares at a Discounted Price, any Purpose?

Domestic & Global News
28 Companies to Invest in Batang Industrial Estate, Investment to Reach IDR18.7 trillion
Syria’s de Facto Leader Not Interested in New Conflicts Despite Israeli Attacks

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