Today’s Outlook:
• Most global stock markets rose on Tuesday trading (25/06/24), with shares of AI chipmaker NVIDIA recovering after a three-day slide, while the Dollar strengthened slightly against the Japanese Yen. Nvidia shares rose 6.8%, ending its 3-day downtrend. The NASDAQ index jumped more than 1%, also ending a 3-day downtrend, while the Communication Technology and Services sector led the gains in the S&P 500 index. Investors are evaluating whether AI-related stocks such as Nvidia will still be able to keep going and propel the stock market to record after record. As noted, Nvidia was the largest company in the world last week, but has fallen about 16% from its peak last Thursday to Monday’s close. Market participants are also looking forward to Friday’s PCE price index data, which could provide further clues about the US Inflation picture and when the Federal Reserve might start cutting interest rates. They are also looking forward to the start of elections in France this weekend and the first US presidential debate on Thursday. Meanwhile, MSCI’s index of stocks around the world rose 2.49 points, or 0.31%, to 803.77. The STOXX 600 index fell 0.23%. The US reported Consumer Confidence (June) at 100.4, slightly better than expectations of 100.0 although this figure was lower than the previous month’s consumer confidence of 101.3. Later tonight we will look forward to New Home Sales (May) and US oil reserves figures from the government.
• CURRENCY: The US DOLLAR strengthened, supported by hawkish comments from Fed official Michelle Bowman who said that stable interest rates “for a while” are likely to be sufficient to control Inflation. She also reiterated her readiness to raise borrowing costs when necessary. The DOLLAR INDEX, which measures the strength of the dollar against a basket of other major currencies, rose 0.11% to 105.63, while the Euro fell 0.19% to USD 1.0712.
• FIXED INCOME: The yield curve between 2-year and 10-year bonds widened to more than 50 basis points for the first time this year; partly due to high demand for 2-year bond auctions.
• COMMODITIES: OIL prices fell still dogged by fears of sluggish demand after a slow start to the US summer driving season. This was evidenced by the unexpected addition of 914k barrels of US oil stocks, contrary to the prediction of 3 million barrels disappearing from reserves. BRENT futures for August closed down to USD 85.01/barrel, while US WTI futures also closed lower at USD 80.83. Spot GOLD prices fell 0.6% to USD 2,318.82/ounce.
• ASIA MARKETS: JAPAN reports BoJ Core CPI Inflation rose to 2.1% yoy, beating forecasts & prior period at 1.9% and 1.8% but this has not lifted the YEN from around a 2-month low of around 160 Yen to the Dollar; leaving traders wary of any further signs of intervention from Japanese authorities to prop up the currency.
• JCI attempted to rise again but failed to make a significant move, with the break out of MA20 / 6950 level, which will be the nearest crucial Resistance where a breakout will free JCI back towards the 7000s. But at least JCI is still holding above MA10 / 6840 Support. Therefore NHKSI RESEARCH advises investors to hold Average Up before JCI is able to prove itself through Resistance, for safe money management.
Company News
• CAMP: Disbursing IDR 117.7 Billion Dividend
• HOKI: FMCG Business Expansion, HOKI Prepares CapEx of IDR 15 Billion
• PTPP: Paying Debt, PTPP Offers IDR 434.62 Billion Bonds
Domestic & Global News
BASF Leaves IDR 42.7 Trillion Battery Project in Indonesia
Building New Markets Outside the US and Europe, China’s BYD Launches Third Electric Car in Japan
Download full report HERE.
