Today’s Outlook:

• The Dow Jones Industrial Average lost 748.63 points, or 1.69%, to close at 43,428.02. Friday’s decline, its worst in the young year, brought its two-day losses to roughly 1,200 points. The S&P 500 slid 1.71% to end at 6,013.13, marking a second negative session after the index closed at a record on Wednesday. The Nasdaq Composite dropped 2.2%, settling at 19,524.01. Stocks sold off on Friday as new U.S. data sparked concern among investors over a slowing economy and sticky inflation, leading them in search of safer assets. Losses intensified into the close as traders feared staying long into a weekend that could bring another barrage of headlines from the Trump administration, which has proposed a flurry of tariffs and other market-moving policy changes since taking charge a month ago.

• MARKET SENTIMENT : Eurozone’s Januay Inflation number will be posted on Monday with the forecasted result to be stagnant at 2.5% YoY (Prev: 2.5% YoY)

• FIXED INCOME AND CURRENCY : U.S. Treasury yields were sharply lower on Friday as investors ran for cover in the middle of a stock market sell-off, while concern over the health of the economy grew. The 10-year Treasury yield dropped about 7 basis point to 4.427%, and the 2-year Treasury yield was lower by more than 6 basis point at 4.202%. One basis point is equal to 0.01%, and yields and prices move in opposite directions. The U.S. dollar rose against a broad range of currencies on Friday including the euro, sterling and those tied to commodities such as the Australian dollar, as investors consolidated positions ahead of the weekend, looked to more inflation data next week and kept an eye on tariff headlines.

• EUROPEAN : The regional Stoxx 600 index ended the session 0.52% higher, after earnings disappointments led to two sessions in the red. Germany’s DAX closed 0.12% lower as the country heads into its election weekend, while France’s CAC 40 gained 0.39%. European stock markets closed higher Friday as a busy week for earnings drew to a close.

– In afternoon trading, the euro stumbled against the dollar after a series of business activity surveys showed a sharp contraction in early February in France and only mild improvement in Germany – the euro zone’s traditional twin engines of growth. It was last down 0.4% at $1.0461, on track for its largest daily fall since early February.

• ASIAN : Hong Kong shares hit a three-year high Friday, leading gains in the region as investors weighed inflation data from Japan against tariff threats from U.S. President Donald Trump. Hong Kong’s Hang Seng Index rose 3.76% to its highest level since February 2022, according to data from LSEG. The Hang Seng Tech index added 6.15%. Shares of Hong Kong listed Alibaba rose 14.7% following a significant profit increase for the company in the December quarter, driven by growth in its Cloud Intelligence division and e-commerce sector. Mainland China’s CSI 300 rose 1.26% to close at 3,978.44. Japan’s Nikkei 225 added 0.26% to close at 38,776.94 while the Topix traded flat to close at 2,736.53. Japan’s inflation rate in January climbed to 4%, hitting its highest level since January 2023. Core inflation — which excludes prices of fresh food — rose to 3.2%, beating Reuters expectations of 3.1%. South Korea’s Kospi ended flat at 2,654.58 while the small-cap Kosdaq added 0.83 to close at 774.65. Australia’s S&P/ASX 200 slipped 0.32% to close the trading day at 8,296.2.

– Investors will continue keeping an eye on the Japanese yen, which strengthened to a more than two-month high of 150.52 per U.S. dollar on Thursday amid bets of more rate hikes by the Bank of Japan this year. The currency is currently trading at 150.22 against the greenback.

• COMMODITIES : OIL prices settled down more than $2 a barrel on Friday, posting a weekly decline as investors grappled with a fading Middle East risk premium alongside uncertainty about a potential peace deal in Ukraine. Brent futures settled down $2.05, or 2.68%, to $74.43 a barrel, while U.S. West Texas Intermediate crude settled down $2.08, or 2.87%, to $70.40. Brent settled 0.4% down on the week, while U.S. crude futures posted a 0.5% weekly loss. Investors also continued to weigh an uptick in U.S. crude oil stockpiles, reported on Thursday, as seasonal maintenance at refineries led to lower processing, the Energy Information Administration said. U.S. energy firms this week added oil and natural gas rigs for a fourth week in a row to the highest level since June, energy services firm Baker Hughes said in a report on Friday. GOLD shed 0.1% to $2,935.75 an ounce. Bullion has gained around 1.7% this week after rising to a record $2,954.69 on Thursday. Gold prices eased on Friday as investors booked profits from the previous session’s record high, but were set for an eighth straight weekly gain, driven by strong safe haven demand amid concerns over U.S. President Donald Trump’s tariff plans.

• JCI has remained stagnant with only an upside of 0.22% on Friday to 6803. The Composite still remained strong above the solid support at 6786, but it is also still within its major downtrend channel pattern and below the dynamic resistance MA20 @ 6887. NHKSI anticipates JCI to be at a sideways trend below 7000 as a solid resistance and 6531 as base support in the medium -term. On Friday, the regular market suffered another Net Foreign Sell of IDR 683.01 bn in the regular market. As USD/IDR is set to be hovering around IDR 16,400-16,200 for the medium term, we view this to be a stable footing for Indonesia’s currency currently.

Company News

• IATA: Hary Tanoe’s Issuer IATA Receives OJK Permission to Hold Rights Issue of IDR 1.27 Trillion
• ESSA: Revenue Slumps, Boy Thohir’s 2024 Earnings of USD45 Million
• IMAS: Salim Group Officially Brings Changan Brand Vehicles to Indonesia

Domestic & Global News
Prabowo Reportedly Appoints Rosan, Pandu and Dony Oskaria as Danantara Executives
US Tightens Supervision of Foreign Investment, China is Targeted

Download full report HERE.