• US stock markets closed lower, with the Nasdaq leading the decline by 1.9% to its lowest point since May 31; the S&P500 closed at its lowest level since June 1, and the Dow Jones Industrial Average turned negative wiping out profits accumulated this year, as data showing surprise strength in the labor market, stoked further concerns about higher Federal Reserve interest rates, pushing Treasury yields to a 16- year high. The CBOE Volatility index, Wall Street’s “fear” index, hit its highest level since May 24. The U.S. Labor Department’s latest Job Openings and Labor Turnover Survey (JOLTs) report, a measure of labor demand, showed job openings in August unexpectedly increased by about 9.6 million, confounding expectations for drop to 8.8M from the previous period’s 8.92M. Atlantic Fed President Raphael Bostic said there wasn’t “urgency” for the central bank to raise rates again, but it would likely take a while to expect the start of rate cuts. While another Fed official stated that he was open to the possibility of another rate hike at the next FOMC meeting. Energy stocks were less than 1% lower as a rise in oil prices following weakness a day earlier helped keep losses in check ahead of the meeting between OPEC and allies led by Russia, known as OPEC+, due Wednesday. Investors are gearing up for US companies’ Q3 earnings reports in the coming weeks in hopes of contributing positive sentiment to the market. While the DJIA is already down 0.4% this year, the Nasdaq has kept a tight grip on its 25% gain since year-end due to a rally fueled by enthusiasm over artificial intelligence.
• The next important Economic data from the US awaited later tonight around 7:15 pm WIB is still around employment, namely the ADP Nonfarm Employment Change (Sept.) which is expected to fall to 160 thousand from 177 thousand the previous month. Followed by a number of PMI data which hopes that business activity in the US both manufacturing and services can still survive in expansionary territory.
• ASIA MARKETS: While China is still in the “Golden Week” long holiday phase, this morning South Korea has announced Industrial Production (Aug.) rose significantly by 5.5% mom compared to predictions and the previous month which was still immersed in negative territory. On an annualized basis, the weakening Industrial Production in August was noticeably improved by successfully shrinking the previous month’s minus 8.1% to just -0.5% yoy, much better than the expectation of -6.2%. South Korea’s Retail Sales were also released to have rallied further; and the Manufacturing PMI figure is one step away from reaching the expansionary ceiling of 50. While Japan reported its Sept. Services PMI slightly better than expected, still in expansionary territory but indeed weaker than the previous month.
• EUROPE MARKETS: A series of PMI data will be released consecutively from Germany, Eurozone, UK. Not to forget, Eurozone will also report PPI (Aug) and Retail Sales (Aug).
• JCI still shows hesitation to cross the nearest barrier: MA10 & MA20 at 6970 although several attempts have been made. JCI needs to cross that level steadily to be able to approach the 7000s area again. NHKSI RESEARCH advises investors/traders to again maintain a WAIT & SEE attitude before adding too much to the portfolio.
• GOTO : Receives USD150 Million in Fresh Funds
• HRUM : Subsidiary Disburses Loan to Blue Sparking Energy
• RMKE : Improving Operational Technology
Domestic & Global News
• TikTok Shop Officially Closes in Indonesia Today October 4
• US Tech Companies in China Probed, US Senators Seek to Meet Xi Jinping
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