Today’s Outlook:
• During Monday’s regular trading, shares of key tech companies dragged down the S&P 500 and the Nasdaq Composite to session losses. Defense tech and artificial intelligence play Palantir extended last week’s decline by falling more than 10%, while Microsoft lost 1% on the heels of a TD Cowen report signaling that the company is slashing data center spending. Nvidia also shed 3% ahead of its quarterly results due Wednesday after the bell. Monday’s decline among tech names also pulled the Nasdaq Composite into negative territory year to date. On the economic front, investors are also turning their attention to the latest U.S. consumer confidence data due out at 10:00 a.m. ET Tuesday. Economists polled by Dow Jones are expecting the Conference Board’s consumer confidence index to show a reading of 102.3 for February, less than the previous month’s reading of 104.1. The report comes ahead of a slew of other economic data releases later in the week, including January’s personal consumption expenditures price index reading Friday. The PCE is the Federal Reserve’s preferred inflation gauge.
• MARKET SENTIMENT: US CB Consumer Confidence for Feburary will be released. While at the Euopean Front, Germany’s 4Q24 GDP numbers will be released.
• FIXED INCOME AND CURRENCY : U.S. Treasury yields ticked down on Monday as investors looked to a busy week ahead, with a flurry of economic data due including a key inflation reading and insights on housing. The 10-year Treasury yield was nearly 2 basis points lower at 4.402%, and the 2-year Treasury yield slipped to 4.175%. One basis point is equal to 0.01%, and yields and prices move in opposite directions. The dollar index rose 0.07% to 106.61, after dipping to 106.12, its lowest since December 10 and is down more than 3% from a more than two-year high hit in January.
• EUROPEAN : The pan-European Stoxx 600 index closed 0.08% lower, weighed down by France’s CAC 40 index, as Germany’s DAX gave up some of its earlier gains to end 0.62% higher. European markets fell on Monday as traders reacted to the results of the German federal election. Preliminary results showed the conservative Christian Democratic Union and the allied Christian Social Union (CDU/CSU) secured the largest share of votes in the election on Sunday, with the alliance’s candidate Friedrich Merz set to take over from Olaf Scholz as chancellor of Europe’s largest economy.
– The euro was up 0.1% at $1.0468 after earlier reaching a one-month high of $1.0528. The euro pulled back from earlier highs on Monday after briefly rallying following the election victory of Germany’s conservatives as the focus turned to how quickly a coalition government can be achieved. Friedrich Merz was set to become Germany’s next chancellor after his party emerged victorious in Sunday’s election as expected, but coalition talks may be difficult and he could face an obstructive parliament after both far-right and far-left parties surged.
• ASIA : Asia-Pacific markets mostly fell Monday after Wall Street logged its worst session of the year last Friday as U.S. economic data pointed to a slowing economy and sticky inflation. Mainland China’s CSI300 index fell 0.22% to close at 3,969.72. Hong Kong’s Hang Seng index ended the day 0.58% lower at 23,341.61, after notching a nearly three-year high in its previous session. Indian stocks continued to be in negative territory, with the Nifty 50 down 1.08%, while the BSE Sensex index had lost 1.03% as of 1.30 p.m. local time. South Korea’s Kospi ended the day 0.35% lower at 2,645.27, while the small-cap Kosdaq was closed down 0.17% at 773.33. Australia’s S&P/ASX 200 ended the day 0.14% higher at 8,308.20, breaking its five-session losing streak. Japanese markets were closed for a public holiday.
– Against the Japanese yen, the dollar was flat at 149.29.
• COMMODITIES : OIL prices settled higher on Monday as fresh U.S. sanctions on Iran and a commitment to compensate for overproduction by Iraq added to concerns of near-term supply tightness, helping the market recover some of Friday’s steep losses. Brent crude futures settled up 35 cents, or 0.5%, at $74.78 a barrel. U.S. West Texas Intermediate crude futures gained 30 cents, or 0.4%, to $70.70. On Friday Brent notched its lowest close since February 6 while WTI had its lowest settlement so far this year. On Monday, the U.S. Treasury imposed a fresh round of sanctions targeting Iran’s oil industry, hitting brokers, tanker operators, and shippers who sell and transport Iranian petroleum. GOLD rose 0.4% to $2,947.48 an ounce as of 01:55 p.m. ET (1854 GMT). It hit $2,956.15 earlier in the session — its eleventh record high in 2025. Gold prices surged to a record high on Monday, driven by safe-haven demand amid concerns over U.S. President Donald Trump’s tariff plans, with additional support coming from inflows into the world’s top gold-backed exchange-traded fund.
• JCI corrected incrementally by 0.78% to 6749. The Composite still remained strong above the solid support at 6697, 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
• DOID: Offering Rp2T Subsidiary Notes, for Capital and Capex
• WIFI: WIFI & PLN Icon Plus to Realize High-Speed and Cheap Internet
• BFIN: Revenue and Profit Shrink, This is BFIN’s Performance in 2024
Domestic & Global News
Government to Issue SBN Housing, Economist Warns of Crowding Out Risk
Following South Korea and US, Vietnam to Impose Tariffs on Chinese Steel Soon
Download full report HERE.
