Today’s Outlook:
• US MARKET : In the regular session, the S&P 500 rose 0.4%, the NASDAQ Composite gained 0.7% and the Dow Jones Industrial Average added 0.5%, rebounding from Tuesday’s sharp selloff in megacap tech shares.
The session marked a modest recovery after warnings from top Wall Street bank executives a day earlier about the sustainability of the recent rally had sparked a wave of profit-taking. Despite lingering worries about lofty tech valuations, investors appeared encouraged by strong corporate results. Analysts said the pullback in highflying AI and semiconductor names looked more like a brief correction than the start of a deeper downturn.
This rebound followed data showing U.S. private payrolls rebounded sharply in October, calming concerns about the health of the U.S. labor market. The ADP employment report, released earlier Wednesday, showed private employment increased by 42,000 jobs last month after an upwardly revised 29,000 decline in September. Economists had forecast private employment rebounding by 28,000 jobs after a previously reported 32,000 drop in September. This report has taken on greater importance this month as the Bureau of Labor Statistics’ closely watched employment report has been delayed again because of the longest government shutdown on record, depriving investors and economists of crucial signals about the state of the economy.
Attention on Wednesday also turned to Washington, where the Supreme Court held a hearing examining whether Trump’s sweeping tariffs violated U.S. law. Justices questioned whether the president had exceeded his authority, casting doubt on the legality of his trade measures. The case, which could reshape presidential trade powers, carries major implications for U.S.-China relations and global markets.
• EUROPEAN MARKET : European stocks closed higher on Wednesday, adding to the global selloff in another busy day for corporate earnings. The DAX index in Germany gained 0.4%, the CAC 40 in France edged 0.1% higher and the FTSE 100 in the U.K. rose 0.6%.
Data released earlier Wednesday showed that German industrial orders rose in September, increasing by 1.1% on the previous month, a recovery after dropping 0.4% the prior month. There is service activity data for the eurozone to digest later in the session, but these numbers are unlikely to have much impact on European Central Bank policymakers as interest rate levels appear set in stone for some time to come. The ECB held rates unchanged at its meeting last week, and is widely expected to maintain rates at its final gathering in December.
• ASIAN MARKET : Asian equity markets slid sharply on Wednesday with Japan and South Korea leading losses, as investors reacted to Wall Street’s overnight sell-off over concerns about stretched valuations.
Japan’s Nikkei 225 plunged -2.5%, also retreating from record high levels, dragged lower by sharp declines in technology-related stocks. China’s Shanghai Composite index rose 0.2%. Hong Kong’s Hang Seng index dropped -0.07%
• COMMODITIES : Oil prices fell more than 1% on Wednesday, settling at two-week lows on pressure from concerns of a possible global oil glut, but data showing signs of strong U.S. demand for fuel limited losses. Brent crude futures closed 92 cents, or 1.43%, lower at $63.52 a barrel, while U.S. West Texas Intermediate crude settled 96 cents, or 1.59%, low at $59.60. Oil prices fell following U.S. government data that showed an increase in crude inventories last week.
• INDONESIA : The JCI closed higher +0.93% in the green zone at the 8318.5 level, where the 8300 resistance area successfully broke out. The movement in the second session of the JCI yesterday was aligned with the second session movement of BRMS – BREN, which today were finally announced in the MSCI November 2025 rebalancing. Both stocks will enter the MSCI Indonesia index constituents, while ICBP and KLBF are removed from the MSCI Indonesia Big Caps.
For those who want to trade conglomerate stocks, momentum for scalping buy can be utilized amid the successful breakout of the 8300 index level. However, still observe the support and resistance levels of conglomerate stocks and assess whether they remain strong enough to continue the breakout, or whether there is rotation from conglomerates to another universe.
Rotation to Old-Dividend Players and Back to Consumer: We continue to recommend partial shifting to stocks with dividend yield cushions above bonds as well as consumer goods as defensive stocks amid uncertain catalysts—protecting the portfolio by taking advantage of the attractive valuation–yield.
Stocks included in the MSCI Indonesia Small Cap index such as DSNG, MSIN, RAJA, ENRG, and WIFI may have opportunities for scalping buy, while still paying attention to each stock’s support and resistance. Additionally, TINS did not end up being included in the MSCI Indonesia Small Cap index because it failed to meet one final rule—having recently been listed on the FCA board within the past few months.
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