Today’s Outlook:
• US MARKET : The Dow Jones Industrial Average climbed 218 points, or 0.5% to a record close of 46,924.68, while the S&P 500 index fell 0.01%, and the NASDAQ Composite slipped 0.2%.The Dow notched a record close Tuesday, led by a rally in major names including CocaCola and 3M following better-than-expected results, though a fall in Alphabet kept gains in check.
Investors have welcomed signs of resilience in the financial sector, after last week’s worries about the health of the regional banking sector, while upbeat remarks from a White House adviser helped fuel hopes that Washington’s partial shutdown could soon be resolved. Optimism surrounded the U.S.-China trade fight also helped the tone, with President Donald Trump and Chinese counterpart Xi Jinping set to meet in South Korea later this month.
• EUROPEAN MARKET: European shares closed slightly higher on Tuesday, following a 1% jump in the previous session, as investors assessed mixed corporate earnings, while French stocks closed at a record high.
The continent-wide STOXX 600 index ended 0.2% higher and most other major regional indexes were also in positive territory. The DAX index in Germany closed 0.4% higher, the CAC 40 in France climbed 0.6%, reaching a new all-time high, and the FTSE 100 in the U.K. rose 0.2%
French stocks including luxury groups LVMH and Hermes helped to boost the broader European index by 0.7%. Industrial stocks gained 0.7%, with Airbus up 1.8% and Safran up 1.7%. French stocks have been on the rise since last week when Prime Minister Sebastien Lecornu survived two no-confidence votes.
Also helping sentiment was the news that leaders of European nations, including Britain, France and Germany, issued a joint statement setting out support for Ukraine and U.S. President Donald Trump’s efforts to end the fighting there.
•ASIAN MARKET: Asian stocks extended strong gains on Tuesday, buoyed by easing U.S.- China trade tensions and a robust Wall Street lead, while Japanese shares maintained record levels as fiscal dove Sanae Takaichi won the lower house vote to become the country’s prime minister.
Japan’s Nikkei 225 climbed as much as 1.5% intraday to a fresh peak of 49,945.95 points, after surging more than 3% a day earlier (Closing at +0.27%). The broader TOPIX index added 0.8%, also hitting a fresh all-time high. Investors cheered expectations that Takaichi, viewed as fiscally dovish, would push for additional stimulus measures to sustain Japan’s fragile recovery. However, both indices shed some gains during the vote amid some uncertainty on Takaichi’s future policy.
China’s blue chip Shanghai Shenzhen CSI 300 rose 1.5%, while the Shanghai Composite index advanced 1.4%. Hong Kong’s Hang Seng jumped 0.7%
• OIL:Oil prices settled higher on Tuesday, bouncing off the previous session’s five-month lows, as investors reassessed expectations of a looming glut and sought clarity on the trade dispute between the U.S. and China, the world’s two biggest oil consumers. Brent crude futures rose 31 cents, or 0.5%, to settle at USD 61.32 a barrel, while U.S. West Texas Intermediate crude futures for November delivery, which expired on Tuesday’s settlement, closed up 30 cents, or 0.5%, at USD 57.82. Both contracts had hit their lowest since early May on Monday, as record U.S. oil production and the decision by the Organization of the Petroleum Exporting Countries and allies to press ahead with planned supply hikes raised expectations of oversupply.
• GOLD :Gold prices fell back from record highs Tuesday, pressured by profit-taking and signs of easing U.S.–China trade tensions that dampened demand for the safe haven. The pullback came as U.S. President Donald Trump struck a conciliatory tone on trade, saying he expected a “strong and fair” deal with China, aiming constructive exchanges with President Xi Jinping at a summit in South Korea next week. U.S. Treasury Secretary Scott Bessent is expected to meet Chinese Vice Premier He Lifeng in Malaysia later this week, following renewed strained relations. The easing of political uncertainty, alongside trade optimism, reduced the urgency for investors to hold defensive assets, like gold.
• INDONESIA: The JCI closed higher once again, rising +1.84% to the green zone at 8,238.08 and breaking through the 8,200 resistance level. The next resistance is around 8,300, with potential to retest its all-time high.
The solid gain in JCI was partly driven by TLKM’s +11.6% surge, following market appreciation of its value-unlocking plan — a fiber asset spinoff into a new entity called Infranexia. This mirrors TLKM’s earlier corporate action when it unlocked the value of its tower assets through Mitratel (MTEL), which went public in late 2021
Conglomerate Stocks Note: Several conglomerate stocks have broken below their 20-day moving averages (MA20), and it is advised to reduce position weights. For those still interested in conglomerate plays, fast or scalping trades are recommended due to the less attractive risk–reward profile. There is still some rebound potential ahead of the MSCI indexing catalyst, though the risk level is considerably higher under current conditions.
It is recommended to adopt tactical plays, such as focusing on sector rotation into fundamentally strong, classic stocks — especially banking stocks, as their dividend yields are currently more attractive than bond yields (Banking Div. Yield > Bond Yield). Despite facing operational challenges (concerns over loan disbursement and asset quality), consumer and healthcare stocks (e.g., UNVR, KLBF) also serve as defensive hedging options.
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