Today’s Outlook:
• Stocks rose on Monday to start a holiday-shortened trading week as the continuous strength in technology names helped the broader market. The S&P 500 gained 0.73% to 5,974.07. The tech-heavy Nasdaq Composite rose 0.98% to 19,764.89, as Tesla and Meta Platforms added more than 2% and Nvidia climbed more than 3%. The Dow Jones Industrial Average erased earlier losses and ended the day 66.69 points higher, or 0.16%, to 42,906.95. Trading was thin on Monday and it is expected to remain muted during the week. The New York Stock Exchange closes early Tuesday for Christmas Eve at 1 p.m. ET, and the market is shut on Christmas Day.
• MARKET SENTIMENT: November US Durable Goods Orders, November US New Home Sales
• CURRENCY & FIXED INCOME: The greenback is on track for its fourth gain in five sessions, during which it has gained 1.2%. The dollar index, which measures the U.S. currency against six of its largest peers, resumed its upward trajectory. It suffered on Friday its biggest one-day drop in nearly a month following a softer-than expected reading on inflation that was still above the Federal Reserve’s 2% target rate. Treasury yields climbed on Monday to begin holiday-shortened trading week, with investor digesting new economic data. The yield on the 10-year Treasury was 6 basis points higher at 4.587%, while the 2-year Treasury was up 2 basis points at 4.338%. One basis point is equal to 0.01% and yields and prices move in opposite directions.
– Against the Japanese yen, the dollar strengthened 0.43% to 157.08. The dollar’s rise, coupled with the Bank of Japan standing holding rates steady and Governor Kazuo Ueda’s comments reducing the odds of a Japanese rate hike next month, have left the yen once again near weak levels that have recently pushed Japanese authorities to intervene to support the currency.
• ASIA MARKETS: Asia-Pacific stocks had a good run in 2024, with most major markets ending the year in positive territory, as the region’s central banks eased monetary policy while an AI boom lifted tech stocks. Taiwan’s Taiex led gains in the region, up 28.85% as of Dec. 23, while Hong Kong’s Hang Seng Index came in second with 16.63%. Asia successfully reduced inflation faster than the rest of the world, said Mike Shiao, chief investment officer for Asia ex-Japan at investment management firm Invesco, paving the way for monetary easing. As an aside, South Korea’s benchmark Kospi lost 8.03% YTD as of Dec. 23, making it the worst performing Asian market.
• EUROPE MARKET : European markets closed just above the flatline on Monday as a shortened trading week began in the run-up to Christmas. The pan-European Stoxx 600 index provisionally ended the session 0.07% higher, with sectors in mixed territory. Meanwhile Germany’s DAX closed 0.23%.
– The euro was down 0.2% at $1.0408. The euro dipped on Monday, as market moves were being dictated by recent global central bank meetings that set expectations for diverging rate cut paths next year. European Central Bank President Christine Lagarde said the euro zone was getting close to reaching the ECB’s medium-term inflation goal, according to an interview published in the Financial Times on Monday.
• COMMODITIES: Oil prices edged lower on Monday in thin trade ahead of the Christmas holiday on concerns about a supply surplus next year and a strengthened dollar. Brent crude futures settled down 31 cents, or 0.43%, at $72.63 a barrel. U.S. West Texas Intermediate crude futures fell 22 cents, or 0.32%, to $69.24 a barrel.
– Gold prices edged lower in subdued holiday-season trading on Monday, weighed down by a robust dollar and high U.S. Treasury yields as investors awaited clearer signals on the Federal Reserve’s monetary policy for 2025. Spot gold was down 0.4% at $2,611.17 per ounce. U.S. gold futures settled 0.6% lower at $2,628.20.
• JCI rebounded 110.77 (+1.59%) with a runaway gap to close the previous exhaustion gap on Thursday last week following an extensive bearish downtrend. Foreign funds were still consistently selling net sales worth IDR 417.99 billion on Friday, while their YTD position was also Net Selling IDR 27.79 trillion (RG MARKET).Investors/traders are advised to BUY stocks that have been in a strong bearish sentiment last week. RUPIAH exchange rate is entrenched at IDR 16,100-16,350/USD, considering current sentiments, limited upside potential for Rupiah “strengthening” towards 16,100 -16,000 at the end of this year.
Company News
• MDKA: Merdeka Copper Repays Debt Notes of IDR 817.71 Billion
• ESSA: ESSA Establishes New Business Entity, Here’s the Purpose
• IMAS: Indomobil’s Response to Nissan-Honda Merger
Domestic & Global News
Directorate General of Taxes Says Premium Rice Remains VAT-Free as Long as PMK Rules Have Not Been Issued
Negotiations Begin Soon, Honda-Nissan Merger Said to Be Realized by 2026
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