Today’s Outlook :
• US MARKET : Wall Street closed sharply higher on Wednesday. The Dow Jones Industrial Average surged 588 points, or 1.2%, while the S&P 500 and the Nasdaq Composite each gained 1.2%. The rally was driven by easing market concerns after U.S. President Donald Trump said he would not impose trade tariffs on European countries.
Sentiment improved after Trump announced that a framework for a future deal on Greenland had been reached following his meeting with NATO Secretary General Mark Rutte. The statement was delivered on the sidelines of the World Economic Forum in Davos, Switzerland. With this framework in place, plans to impose tariffs on Europe—previously opposed to U.S. moves related to Greenland—were deemed unnecessary.
Trump said the framework includes mineral rights for the United States as well as participation in the “Golden Dome,” a layered U.S. missile defense system. He emphasized that cooperation would involve both mineral resource management and defense systems. Following the news, U.S. bond markets strengthened, with U.S. Treasury yields falling sharply.
• EUROPEAN MARKET : European stocks traded mixed on Wednesday as investors remained cautious following President Trump’s speech at WEF Davos. Germany’s DAX fell 0.5%, while France’s CAC 40 and the U.K.’s FTSE 100 each edged up about 0.1%.
In Davos, Trump said the U.S. seeks rights and ownership over Greenland for national and global security reasons, but stressed that military force would not be used.
Meanwhile, U.K. inflation in December came in above expectations, with annual CPI rising to 3.4% from 3.2% in November, the highest among G7 countries despite weak economic growth.
• ASIAN MARKET : Most Asian stocks declined on Wednesday amid heightened geopolitical uncertainty over U.S. demands regarding Greenland.
Japan’s Nikkei 225 fell 0.4%, pressured by a selloff in government bonds on concerns over higher fiscal spending and tax cuts under Prime Minister Sanae Takaichi. Yields on 10-year Japanese government bonds jumped to their highest level in 27 years, prompting authorities to urge markets to remain calm.
In China, the Shanghai Composite closed flat, with sentiment capped despite hopes for additional stimulus from Beijing after fourth-quarter GDP data showed slowing growth.
• COMMODITIES : Oil prices closed about 0.5% higher on Wednesday, supported by optimism over tighter supply after temporary shutdowns at two major oilfields in Kazakhstan and low Venezuelan export volumes highlighting slow output recovery. Brent rose 32 cents (0.5%) to USD 65.24 a barrel, while WTI gained 26 cents (0.4%) to USD 60.62 a barrel. The gains followed a roughly 1.5% jump in the previous session after OPEC+ member Kazakhstan halted production at the Tengiz and Korolev fields due to power distribution issues.
Meanwhile, copper prices rebounded on Wednesday after a sharp fall in the prior session, as investors focused on tight inventories outside the U.S., despite concerns over demand sustainability. Three-month copper on the LME rose 0.4% to USD 12,796 per metric ton as of 17:00 GMT, after dropping 1.6% on Tuesday. Copper hit a record high of USD 13,407 per ton last week.
• INDONESIA : The JCI closed down 1.4% at 9,010.3. The index remained highly volatile amid concerns over potential capital outflows following new MSCI policies on free float requirements. Investors are advised to stay cautious amid current volatility, as RSI indicators signal oversold conditions and negative divergence points to possible near-term correction. Nevertheless, overall momentum in the IHSG remains strong enough to support narrative-based trading strategies.
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