Today’s Outlook:
• World stock indexes fell on Friday trading (07/19/24) as global cyber disruptions have disrupted operations in various industries, while the US DOLLAR rose along with the US TREASURY YIELD. The S&P 500 and Nasdaq recorded their biggest weekly percentage declines since April. The disruptions affected services ranging from airlines, banks to healthcare. Cyber security company CrowdStrike fell 11.1% after an update to one of its products appeared to trigger a glitch in Microsoft’s Windows operating system. As a result, the CBOE Volatility index – Wall Street’s “fear indicator” – hit its highest level since late April. On WallStreet, the DJIA led the decline by dropping 377.5 points / -0.93% to 40,287.53. The MSCI index of global shares also fell 6.58 points, or 0.80%, to 810.87; while the STOXX 600 index dropped 0.77%. Investors are also preparing to monitor key results in the US second quarter earnings season in the coming weeks. The performance of megacaps will be in focus, with the S&P 500 Technology-related sector down 5.1% this week as investors turn to laggard sectors this year.
• DOLLAR INDEX rose and is on track for its first weekly gain in 3 weeks, bouncing back on strong latest US economic data and concerns about recent tech disruptions. The dollar index, which measures the dollar’s strength against a basket of currencies including the Yen and Euro, rose 0.21% to 104.36, where the Euro was down 0.14% at USD 1.0881. Against the Japanese Yen, the Dollar strengthened 0.06% to 157.46.
• The Federal Reserve is scheduled for its next policy announcement at the end of July. The market is almost fully price-in for a cut at the September FOMC Meeting, according to the CME FedWatch survey. US Treasury yields rose as investors awaited this week’s important PCE PRICE INDEX data update. The yield on the benchmark 10-year US Treasury note rose 5.5 basis points to 4.243%, from 4.188% at the end of Thursday.
• COMMODITIES: OIL prices fell more than USD 2 on Friday at their lowest level since mid-June, as traders eyed the possibility of a ceasefire in Gaza, while the strengthening US Dollar pushed buying interest in oil down further. BRENT crude oil prices fell 2.9%, to USD 82.63/barrel. US WTI futures fell 3.3%, to USD 80.13.
• ASIA & EUROPE MARKETS: Today it’s the turn of CHINA’s central bank to set interest rates where they are still expected to remain the same: at 3.95% for long term, and 3.45% for short term. While in GERMANY, the German Retail Sales (May) figure will be monitored which plays an important role regarding the European region’s Inflation, especially after they reported a heating PPI in June. In the UK, last Friday they announced their Retail Sales which turned out to be a contraction as a result of the economic slowdown.
• JCI seems to be still struggling in the Resistance region around 7300 although last Thursday’s gain saved JCI’s position back above MA10 again, making 7278 level as the closest Support at the moment. NHKSI RESEARCH feels it is still necessary to remind investors/traders to refrain from positioning large amounts of Buy, given the vulnerability of the JCI to consolidate.
Company News
• BIRD: Realizing Company’s Capital Expenditure of IDR223 Billion, Mostly for Fleet Rejuvenation
• TPIA: Chandra Asri Optimizes Three Subsidiary Ports
• MDKA: Ready to Pay Principal and Interest on Maturing Bonds
Domestic & Global News
Airlangga Speaks Out about Free Lunch Budget Cut to IDR 7,500
Israel Strikes Yemen for the First Time Following Deadly Houthi Drone Attack
Download full report HERE.
