Today’s Outlook:
• The Dow Jones closed higher on Wednesday (21/02/24) buoyed by last-minute buying ahead of the market close as investors were no longer too fixated on the contents of the Fed’s January Minutes which showed that most central bank officials were still hesitant to cut interest rates immediately. Policymakers are also unsure how long the tight monetary policy will last. US Treasury yields reacted by remaining at intraday highs, where the rate-sensitive 2-year bond rose 4bps to 4.655%. From earnings sentiment, after the US market closed, Nvidia reported better-than-expected fourth quarter performance on the back of surging demand for AI chips, thus softening the effect of the market blow from the ban on US chips entering China. Nvidia’s earnings report which has been eagerly awaited by market participants is believed to be able to move the direction of the short term momentum of the stock market. It was Energy stocks that led the overall market gains, as OIL prices rose amid the threat of widespread Middle East conflict escalation that could potentially disrupt the flow of global crude oil supplies. On the one hand, United Airlines reported yesterday that they plan to reopen flight paths to Israel next month, making them the first US airline to resume service to the conflict area since the Hamas invasion of southern Israel began last 7 October. Important economic indicators to look forward to tonight: Initial Jobless Claims (consensus: 218k versus previous: 212k), S&P Global US Manufacturing PMI (Feb), Existing Home Sales (Jan), and Crude Oil Inventories.
• ASIAN & EUROPEAN MARKETS: DATA PMI day will also be awaited in a number of Asian & European countries, such as Japan, Germany, Eurozone, and the UK. More importantly, the Eurozone will announce its January Inflation rate which is expected to be around 2.8% yoy, cooling slightly from the previous month’s 2.9%.
• INDONESIA: The central bank set BI7DRR to remain at 6.0% with benchmark deposit and lending rates unchanged at 5.25% and 6.75% respectively. JCI went through a volatile trading session yesterday, where most of the day was in deep red territory but towards the close there was significant buying that almost put out the fire completely with only a slight decline of 3.5 points. (-0.05%) to the 7349 level. The fact that 7370 level is the Resistance for JCI to rise further, is an important consideration factor for investors/ traders if they want to be fully-invested in the market at the current position. NHKSI RESEARCH would still like to remind you to be prepared in case consolidation should occur and therefore, reduce your portfolio position wisely.
Company News
• BRIS: Distribute IDR19.35 T SME Financing in 2023
• BNGA: Record IDR6.47 T Net Profit in 2023
• TLKM: Spending IDR3.5 T on Merah Putih 2 Satellite
Domestic & Global News
• BI Holds 6% Benchmark Interest Rate, Entrepreneurs Say It’s Less Than Ideal
• Malaysia’s Central Bank Boss & Finance Minister Speak Out after Ringgit Hits Lowest Level since 1998
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