Today’s Outlook:
• On Thursday trading (29/08/24), Wall Street closed mixed amid falling Nvidia share prices which pressured the Technology sector. On the other hand, stronger US economic data helped ease recession fears. The Dow Jones Industrial Average gained 143 points (0.6%), the S&P 500 rose 0.1%, while the NASDAQ Composite edged down 0.2%. GDP growth for the second quarter was 3%, exceeding expectations and up from 1.4% in the first quarter. Unemployment benefit claims last week came in at 231,000, slightly below estimates. Expectations of an interest rate cut in September boosted the US stock market, while Nvidia fell more than 6% on disappointing 2024-2025 guidance despite a $50 billion buyback plan. In contrast, Apple shares rose more than 1% after reports that the company is considering an investment in OpenAI.
• MARKET SENTIMENT: Let’s not forget that there will be important data closely monitored by market participants and the US central bank on Friday evening, namely the US PCE PRICE INDEX, Personal Spending, as well as the inflation outlook & consumer sentiment from the esteemed University of Michigan.
• ASIAN MARKETS: Financial market trading in Asia on Friday may be volatile, with investors facing a range of important data releases. Today’s economic calendar includes: India’s second quarter GDP, South Korea’s retail sales and industrial production, Hong Kong’s retail sales, data from Japan including Tokyo’s retail sales, industrial production, unemployment and inflation. India’s economic growth likely slowed to 6.9% in the April-June quarter. On the corporate front, earnings reports from Industrial and Commercial Bank of China, CITIC, and China Construction Bank will also be released. This morning SOUTH KOREA has reported Industrial Production & Retail Sales which weakened further in July. On the other hand, JAPAN announced Tokyo Inflation which rose above expectations, but was not accompanied by Industrial Production & Retail Sales which also strengthened; the Unemployment Rate instead rose 0.2% to 2.7% in July, indicating symptoms of stagflation beginning to creep into the Japanese economy. Notably, Japan’s NIKKEI is down 2% this month, MSCI Asia ex-Japan is up 1.5%, global stocks and the S&P 500 are up over 1%, while China’s blue chip index is down almost 5%.
• EUROPEAN MARKETS: From continental Europe, today will see: Retail Sales and Unemployment figures from GERMANY, preliminary estimate of August CPI and Unemployment rate from EUROZONE.
• CURRENCY: During the almost-ended month of August, the DOLLAR INDEX fell 2.6%, the Yen rose 3.7%, and the Chinese Yuan rose 1.5%.
• COMMODITIES: Oil prices settled up by more than a dollar a barrel on Thursday as supply disruptions in Libya and plans to lower output in Iraq raised fears of tighter global supplies. Brent crude futures gained $1.29, or 1.6%, to settle at $79.94 a barrel. U.S. West Texas Intermediate crude futures rose $1.39, or 1.9%, to $75.91 a barrel. More than half of Libya’s oil production was offline on Thursday and exports were halted at several ports due to a standoff between rival political factions. About 700,000 barrels per day of oil output is offline in the country, according to Reuters calculations.
• JCI is finally showing signs that maybe we should further consider reducing positions in this Resistance area around 7650, after touching another new record high at 7715.76. The achievement was followed by IDR 1.4 trillion foreign net buy (all markets), bringing the Foreign Net Buy position over the past month to a massive IDR 16.67 trillion. No wonder this is also what makes the RUPIAH comfortably strengthen at 15410 per USD. NHKSI RESEARCH advises investors not to be too aggressive at the end of this week full of important economic data, although trading opportunities may still remain in some sectors. For a more bullish scenario, NHKSI RESEARCH is still targeting 7800 for JCI by year end.
Company News
• WIFI: Surge’s Profit Surges, Here’s Its Share Projection
• HEAL: Hermina Ready to Add 100 Beds in IKN, This is the Purpose
• GOOD: Profit in I/2024 Semester Rises 20%, Garudafood Boosts Beverage Business
Domestic & Global News
Ministry of Agriculture Aims for Milk Self-Sufficiency in 2029, How to Do It?
Google Considers Building Giant Data Center in Vietnam
Download full report HERE.
