Today’s Outlook:
• US MARKET : Wall Street ended mostly higher on Wednesday. The S&P 500 rose 0.4%, while the NASDAQ Composite advanced 0.7%. The Dow Jones Industrial Average ended largely flat.
Major banks reported better-than-expected profits, buoyed by resilient investment banking and trading revenue. Results from Bank of America, Morgan Stanley and Goldman Sachs helped lift sentiment.
Gains were also aided by expectations of Fed easing later this month. Federal Reserve Governor Stephen Miran on Wednesday called for quick rate cuts, citing the economic risk of a further strain in U.S.-China trade relations. The remarks arrived a day after Fed Chair Jerome Powell’s dovish comments reinforced bets that the central bank will roll out rate reductions at its last two meetings of 2025. However, signs of rising friction between Washington and Beijing capped Wall Street’s rise. Treasury Secretary Bessent added to fears of a trade war, saying in a CNBC interview that the Trump administration isn’t likely to back down from its tough negotiating stance even if markets react negatively. Trump has floated cutting off trade ties with China in the cooking‐oil space, accusing Beijing of “purposefully not buying” U.S. soybeans.
The renewed tensions came as the U.S. government shutdown entered its third week, delaying key economic data releases and heightening investor uncertainty. Investors await more quarterly earnings this week
• EUROPEAN MARKET:European indices were mixed on Wednesday, following steep losses earlier this week due to the threat of a new trade dispute between the U.S. and China, with French politics to the fore. The DAX index in Germany fell 0.1%, the CAC 40 in France soared 2% and the FTSE 100 in the U.K. declined 0.4%.
European stock markets have benefited Wednesday following comments from Jerome Powell, in which the Federal Reserve chief indicated that the U.S. economy was on firmer footing even as he cautioned that a notably softer labor market was emerging.
French indices closed higher on Wednesday as France’s LVMH sparked a rally in luxury goods groups and eased concerns that slowing global growth and tariffs are hurting corporate health. LVMH shares rose 12.2%, their biggest one-day jump since January, after the owner of Louis Vuitton and Dior reported better-than-expected third quarter sales, driven by improved demand in China.
•ASIAN MARKET:Asian stock markets rebounded on Wednesday after steep losses earlier this week, as investors took comfort from dovish comments by Federal Reserve Chair Jerome Powell, even as renewed U.S.-China trade tensions kept sentiment fragile.
The relief rally followed Powell’s remarks on Tuesday that the U.S. economy was on firmer footing but cautioned that a notably softer labor market was emerging. He said the central bank was considering an end to its balance sheet drawdown, known as quantitative tightening. The comments were interpreted as signaling that the Fed may cut rates again later this year. U.S. Treasury yields fell and the dollar weakened following Powell’s speech, helping lift risk appetite across Asian markets.
Japan’s Nikkei 225 jumped 1.8% on Wednesday after plunging nearly 3% in the previous session.
Data on Wednesday showed that China’s economy remains under pressure. Figures revealed that consumer prices fell 0.3% in September from a year earlier, compared with a 0.4% decline in August. Producer prices fell 2.3% year-on-year, easing from a 2.9% drop the previous month. As the data signaled persistent deflationary pressures, the government is expected to dole out more supportive measures in the coming months to support economic growth.
• COMMODITIES:Brent crude futures rose by 1.1% to USD 62.61 per barrel after U.S. President Donald Trump said on Wednesday that Indian Prime Minister Narendra Modi had pledged to stop buying oil from Russia. Trump said he would try to get China to do the same as Washington intensifies efforts to cut off Moscow’s energy revenues. India and China are the two top buyers of Russian seaborne crude exports
• INDONESIA: The JCI closed down -0.19%, slipping into the red at 8051.18, and is currently attempting to hold above the 8000 support level. Keep an eye on banking stocks that are approaching or entering their oversold support areas, as current valuations appear quite attractive for potential buying opportunities. In this highly volatile market, closely monitor conglomerate stocks in your portfolio — if they begin to break below the 20-day moving average (MA20), it’s advisable to reduce position sizes. If a continued pullback occurs in gold-related commodity stocks, they may present short-term trading opportunities, especially when showing signs of weakness. Traders can take advantage of scalping momentum in high-volatility gold commodity stocks.
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