Today’s Outlook:

• In the regular trading session, the broad market S&P 500 posted its biggest daily loss since December, dropping 1.76%. The blue-chip Dow fell 649.67 points, or 1.48%, while the Nasdaq Composite shed 2.64%. After trading higher earlier in the day, the three major indexes all dropped into negative territory after President Trump confirmed Monday afternoon that the U.S.′ 25% duties on Canada and Mexico would go into effect the following day. He added that there was “no room left” for the two nations to negotiate these new import tariffs. Trump also slapped an additional 10% tariff on Chinese goods. The information technology sector felt Monday’s losses particularly, with Nvidia dropping nearly 9% and Broadcom falling 6%. Investors flocked to defensive corners of the market, with the consumer staples sector advancing 0.6%, while health care climbed about 0.4%.

• MARKET SENTIMENT : There is no current significant economic data being published for today.

• FIXED INCOME & CURRENCY : The 10-year Treasury yield pulled back on Monday as investors readied for President Donald Trump’s tariffs on Canada and Mexico to go into effect. The benchmark 10-year Treasury yield slid more than 6 basis points to 4.163%. The 2 -year Treasury yield slipped around 4 basis points, siting at 3.96%. One basis point is equal to 0.01%, and yields and prices move in opposite directions. The U.S. dollar index fell 0.48% to 106.78.

• EUROPE : European markets closed higher on Monday, amid a charge in defense shares after regional leaders held security talks that touched on bolstered military spending. The regional Stoxx 600 index moved between losses and gains in early deals before closing 1.1% higher. The Stoxx Europe aerospace and defense index rose by 8%, marking its best session in five years. Data out Monday showed euro zone inflation dipped to 2.4% in February, slightly above analyst expectations, ahead of the European Central Bank interest rate decision on Thursday. Economists surveyed by Reuters had expected inflation to dip to 2.3% in February, down from 2.5% in January. The euro zone Purchasing Managers’ Index meanwhile showed contraction in the bloc’s manufacturing sector eased to its least severe in two years.

– The euro rebounded on Monday as hopes for a Ukraine peace deal improved, and interest rate differentials moved against the dollar ahead of a possibly pivotal steer on U.S. economic growth in the February payrolls report late in the week. European Commission President Ursula von der Leyen will inform member states on Tuesday about plans to strengthen the European defense industry and the EU’s military capabilities, she said on Monday. Meanwhile, the parties in talks to form Germany’s new government are considering quickly setting up two special funds potentially worth hundreds of billions of euros, one for defense and a second for infrastructure, three people with knowledge of the matter told Reuters.

• ASIA : Asia-Pacific markets were set to fall Tuesday, tracking Wall Street declines overnight after U.S. President Donald Trump made it clear that tariffs on Mexico and Canada would go into effect as planned. Japan’s benchmark Nikkei 225 was set to open lower, with the futures contract in Chicago at 37,345 while its counterpart in Osaka last traded at 37,300, against the index’s last close of 37,785.47. Japan’s employment rate for January came in at 2.5%, slightly higher than Reuters’ estimates of 2.4%. Futures for Hong Kong’s Hang Seng index stood at 22,910 pointing to a weaker open compared to the HSI’s close of 23,006.27. Investors will be keeping a watch on Chinese stocks ahead of the country’s annual parliamentary gathering, known as the “Two Sessions,” which will kick off later in the day. Australia’s S&P/ASX 200 started the day 0.92% lower. South Korea’s retail sales for January fell 0.6% from the previous month.

– Against the Japanese yen , the dollar weakened 0.26% to 150.23.

• COMMODITIES : OIL prices fell more than 1% on reports OPEC+ will proceed with a planned oil output increase in April and on worries what U.S. tariffs would do to global economic growth and oil demand. The Organization of the Petroleum Exporting Countries and its allies like Russia, known as OPEC+, has decided to proceed with a planned April oil output increase, three sources from the producer group told Reuters on Monday. OPEC+ has been cutting output by 5.85 million barrels per day (bpd), equal to about 5.7% of global supply, agreed in a series of steps since 2022 to support the market. Brent futures fell $1.19, or 1.63%, to close at $71.62 a barrel, while U.S. West Texas Intermediate (WTI) crude lost $1.39, or 1.99%, to settle at $68.37. GOLD prices rose over 1% on Monday after a slump to a three-week low in the previous session, driven by a weaker dollar and safe-haven buying in response to concerns over U.S. President Donald Trump’s tariff policies. Spot gold gained 1.2% to $2,893.44 an ounce. U.S. gold futures rose 1.95% to $2,904.10.

• JCI rebounded after reaching a solid support at 6268. The index now nears its resistance at 6519. NHKSI anticipates JCI to be at a sideways trend below 6500 as a solid resistance and 6000 as the next base support after breaking out of its previous solid support at 6393. On Friday, the regular market suffered another Net Foreign Sell of IDR 2.91 tn in the regular market. As USD/IDR is set to be hovering around IDR 16,600-16,300 for the medium term, we view this to be a stable footing for Indonesia’s currency currently eventhough it indicates currency weakness amongst regional peers.

Company News

• HILL: Hillcon Dapat Restu Stock Split 1:5
• WIFI & DOOH: WIFI dan DOOH Kolaborasi Jangkau 40 Juta Pelanggan Internet dengan AI
• CMRY: Melonjak 22 Persen, Cimory 2024 Koleksi Laba Rp1,51 Triliun

Domestic & Global News
Bos Danantara Pastikan Investasi Proyek Hilirisasi Lewat Seleksi Ketat
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