Today’s Outlook:

• The Dow Jones Industrial Average narrowly snapped its longest losing streak since 1974 on Thursday. The 30-stock Dow added 15.37 points, or 0.04% to close at 42,342.24. The S&P 500 slid 0.09% to 5,867.08, while the Nasdaq Composite fell 0.10% to 19,372.77. Though the major averages initially rebounded to start the session – with the Dow up more than 460 points and the S&P 500 up more than 1% at their respective highs of the day – they shed their gains as the day went on, resulting in a very weak close. Seven of the 11 sectors of the S&P 500 ended the day lower.

• MARKET SENTIMENT: US November Core PCE Price Index

• ASIA MARKETS: Asia-Pacific stocks and currencies fell Thursday, amid a broader market sell-off after the U.S. Federal Reserve delivered its third consecutive rate reduction and signaled fewer rate cuts ahead. Investors assessed the Bank of Japan’s decision to keep its policy rate unchanged at 0.25% for the third straight meeting. In response to the central bank’s move, the Nikkei 225 lost 0.69% to end at 38,813.58, while Topix was down 0.22%, finishing at 2,713.83. In South Korea, the Kospi index dropped 1.95% to close at 2,435.93 and the Kosdaq index declined 1.89% to 684.36. The South Korean won hovered near its weakest level since March 2009, and was last trading at 1,452.33 on the U.S. dollar. Hong Kong’s Hang Seng index declined 0.36% in the final hour of trade, while the mainland China’s CSI 300 index edged up slightly to close at 3,945.46. The Hong Kong Monetary Authority on Thursday delivered a 25-basis-point interest rate cut in lock-steps with the Fed. The country’s currency is tightly pegged to the U.S. dollar.

• CURRENCY & FIXED INCOME: The dollar hovered near its two-year high on Thursday after the Federal Reserve cut interest rates and signaled a much slower monetary policy easing trajectory in 2025, while the yen weakened against the greenback after the Bank of Japan held rates steady. The dollar edged higher from losses early in the session after a stronger-than-expected reading on U.S. third quarter GDP showed the economy grew at a 3.3% annual rate. The number validated the Federal Reserve’s cautious new take-it-slow approach to easing, as did a bigger-than-expected fall in the number of applications for unemployment insurance to 220,000 last week. Yields on 10-year Treasuries jumped past 4.5% to the highest level since May and the yield curve steepened to its widest gap in more than two years  in the face of the U.S. central bank’s more measured approach to interest-rate cuts in the coming year. The yield on benchmark U.S. 10-year notes rose 7.2 basis points to 4.57%, from 4.498% late on Wednesday.

– The Japanese yen dipped 0.74% to 155.94 against the greenback, hitting a one-month low, as BOJ Governor Kazuo Ueda said the central bank will continue raising policy rates if the economy moves in line with its forecast.

– European stocks fell on Thursday, with the benchmark STOXX recording its biggest single-day drop since early November as investors fled riskier assets after the U.S. Federal Reserve signalled a slower pace of interest rate cuts next year. The pan-European STOXX 600 index closed 1.5% lower, hitting a three-week low, with all the major sub-sectors in the red.

– The euro, which tumbled 1.34% on Wednesday, managed to claw back some losses and was last 0.16% higher at $1.036650 on Thursday. The Bank of England held interest rates at 4.75% as expected on Thursday. Sterling dipped, weakening 0.58% to $1.25.

• COMMODITIES: Oil prices fell on Thursday after central bankers in the U.S. and Europe signaled caution over further easing of monetary policy, fanning concerns that weak economic activity could dent demand for oil next year. Brent crude futures fell by 51 cents, or 0.7%, to settle at $72.88 a barrel. U.S. West Texas Intermediate crude futures for January delivery fell 67 cents, or 1%, to $69.91 per barrel and expired on settlement. The more active WTI February contract fell 64 cents to settle at $69.38 per barrel.

– Spot gold rose 0.35% to $2,596.60 an ounce. U.S. gold futures fell 1.69% to $2,592.00 an ounce. Gold advanced but pared earlier gains after U.S. economic data reinforced expectations that the Fed will take a cautious approach to monetary policy in the coming year.

• JCI continued its correction 128.99 (-1.84%) after reaching a peak last week on Wednesday forming the Shooting Star candle. Foreign funds were still consistently selling net sales worth IDR 943.95 billion yesterday, while their YTD position was also Net Selling IDR 27.04 trillion (RG MARKET).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 IDR 16,100-16,350/USD, considering current sentiments, limited upside potential for Rupiah “strengthening” towards 16,100 -16,000 at the end of this year.

Company News

• SRIL: Supreme Court Rejects Sritex’s Cassation, Total Creditor Bills Reach Rp32.63 Trillion
• BBCA: Share Price Landslides as Foreigners Sell, Led by Blackrock and Fidelity
• MDIY: MR. DIY Go Public, Shareholders Must Lock Up Shares for Six Months

Domestic & Global News
Indonesia-Egypt Agree to Strengthen Palm Oil and Fertilizer Cooperation
Iran’s Currency Plummets to Lowest Level in History

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