Today’s Outlook:

• The US stock markets are set to be shuttered on Monday in observance of the Presidents’ Day holiday. Traders are looking ahead to the release of more quarterly earnings, including key results from Nvidia and Walmart, as well as the publication of minutes from the Federal Reserve’s January gathering. THIS WEEK’S QUARTERLY FINANCIAL REPORT season particularly highlights artificial intelligence (AI)-related chipmaker Nvidia and retailer Walmart. Along with its fourth quarter results following the closing bell on Wednesday, investors will likely be keen to parse through any commentary from Nvidia about the path ahead for AI demand this year. Elsewhere, Walmart will step into the spotlight on Tuesday. The big-box giant could provide a glimpse into the spending habits of American consumers who have been carefully watching their wallets during a time of elevated interest rates and high inflation. What Walmart has to say about these trends will subsequently be in sharp focus.
• Fed minutes highlight upcoming economic releases. It should be a slower week on the U.S. economic calendar after a spate of blockbuster data releases that have altered some expectations for potential Federal Reserve interest rate cuts. Highlighting the agenda will be minutes from the U.S. central bank’s January policy meeting on Wednesday, which could provide a fresh peek into how policymakers view the evolution of borrowing costs this year. Last month, the Fed left rates unchanged at a more than two-decade high, while Chair Jerome Powell stressed that officials wanted to see more evidence that inflation was sustainably cooling back down to their 2% target before starting to consider a pivot.
• ASIA MARKETS: China’s domestic stock markets rose on Monday as trade resumed after the Lunar New Year holiday, amid signals that consumer spending had picked up and in some cases surpassed pre-COVID levels during the week-long break. The blue-chip Shanghai Shenzhen CSI 300 index closed higher by 1.1%, while the Shanghai Composite index climbed 1.6%. Sentiment was aided chiefly by official data over the weekend showing that Chinese consumers spent more on travel, shopping and eating out during the holiday than they had a year ago. The readings boosted hopes that Chinese consumer spending — which is a key driver of economic growth — was now recovering after a three-year slump. Today will see the Chinese central bank’s decision on the PBOC Loan Prime Rate which the consensus is that it will be held at 3.45%.
• COMMODITIES; Brent crude oil prices settled slightly higher in an abbreviated session on Monday, as lingering supply concerns from tensions in the Middle East were offset by signs of weakening demand. Brent futures gained 9 cents to settle at $83.56 a barrel. U.S. West Texas Intermediate (WTI) crude for March delivery, which will not have a settlement today and expires on Tuesday, rose 30 cents to $79.49 a barrel. Both Brent and WTI futures last week gained about 1.5% and 3% respectively, reflecting the increasing risk of the Middle East conflict widening, as Israeli raids put the Gaza Strip’s second-largest hospital out of service. The US has proposed the United Nations Security Council oppose Israel’s Rafah assault and back a temporary Gaza ceasefire, as reported by Reuters.
• JCI closed Monday’s trading (19/02/24) with a loss of 38.8pts or 0.5% down to 7296 level. Technically, the Doji candle followed by a red candle (which occurred in the Resistance area) is a confirmation that the consolidation still has the potential to continue to the first Support of the bullish swing around 7220. If the consolidation still needs to happen to that level, then NHKSI RESEARCH would suggest using that momentum as an opportunity to Buy On Weakness, considering that foreign buying interest is still coming in. Amidst the reddening trade yesterday, foreign still accumulated net buy of IDR 842.11 billion. Rupiah exchange rate position = 15,607/USD.

Company News
• WIFI: Injecting IDR 132 M to Subsidiary’s Capital
• WSBP: Obtained Jakarta LRT Phase 1B Project Contract
• INCO: IDR3,800/Sheet Divestment of Vale Indonesia

Domestic & Global News
• Minister of Trade Looks into the Causes of Soaring Food Prices After the Election
• China’s State-owned Banks Prepare IDR 130 Trillion Loan for Property Sector

Download full report HERE.