Today’s Outlook:

• The NASDAQ posted a record close on Friday (24/05/24), ending the week up 1.1% on the back of a surge in Nvidia shares which reported fantastic 1st quarter earnings, supporting bullish stock market sentiment. Nvidia reported revenue that increased 3x yoy and profit that jumped 7x on an annualized basis.
• Analysts at Goldman Sachs have pushed back their forecast for the first Fed rate cut to September (from July) following a number of Fed statements that emphasized concerns that Inflation’s path to the 2% target will likely take longer than expected. Concerns about inflation eased slightly following a decline in 12-month inflation expectations from the University of Michigan survey to 3.3% from 3.5% previously. The CME Fed watch Tool also indicated a roughly 45% chance that the Fed will cut rates from a more than two-decade high of 5.25% to 5.5% in September. On the other side of the economy, Durable Goods Orders grew 0.7% in April, down from 0.8% growth in the previous month, but the performance was much better than the negative forecast at – 0.9%. The SEC approved applications for eight crypto currency Ethereum-based ETFs including VanEck, Fidelity, Franklin, Grayscale, Bitwise, ARK Invest 21Shares, Invesco Galaxy, and BlackRock (NYSE:BLK) – to be listed on the Nasdaq, NYSE Arca, and Cboe BZX exchanges.
• ASIA & EUROPEAN MARKETS: Similar to the US markets, European financial markets will also be on holiday this Monday. However, a number of important data will be released from GERMANY such as the German Ifo Business Climate Index (May) which will assess market participants’ optimism over the business climate in the next 6 months. Meanwhile, Indonesia which will resume trading after the Vesak holiday long weekend, will use this Monday to adjust to the regional market aura.
• GLOBAL GEOPOLITICAL CONFLICTS: Israeli airstrikes killed around 35 people in Rafah, where Israel claims to have eliminated Hamas generals. The strikes came after Yemen-backed Houthi militants released more than 100 prisoners of war in what they said was a humanitarian initiative. In continental Europe, Russian troops in the Ukrainian city of Kharkiv killed 14 people and wounded at least a dozen others.
• COMMODITIES: OIL prices fell throughout the week due to concerns that the strong US economy will keep interest rates high for longer, reducing global oil demand; although it was also thought that demand in the US would increase due to more road trips during the summer. However, this did not prevent BRENT prices from dropping 2.1% and US WTI from dropping 2.8% over the last week.
• JCI needs to test the strength of MA50 which is the closest Resistance currently at 7240 level to allow JCI to get another bullish swing towards TARGET 7300-7400. NHKSI RESEARCH also advises investors / traders to pay attention to MA10 & MA20 Support which should keep JCI movement today above the crucial level of 7180-7160.

Company News

• NCKL: Prepare Budget for Buyback
• ISAT: Distributing IDR2.164 Trillion Dividend
• BBYB: IDR14.23 Billion Profit in 1Q24

Domestic & Global News
Indonesia Receives IDR 7.99 Trillion Loan from ADB to Reduce Plastic Waste
Janet Yellen Worried, High Interest Rates Will Increase US Debt

Download full report HERE.