Today’s Outlook:
• The Dow closed higher Friday (3/11/23), wrapping up the week with its biggest weekly gain this year as a weaker-than-expected jobs report stoked hopes that Federal Reserve rate hikes are now in the rearview mirror, pushing Treasury yields sharply lower. The Dow Jones Industrial Average was up 0.7%, while the S&P 500 was up 0.9% and the NASDAQ Composite was up 1.4%.
• Softer October jobs report bolsters expectations of Fed pause. The economy added 150,000 jobs in October, less than the 180,000 expected and down from 336,000 in September. The unemployment rate ticked higher to 3.9% from 3.8%, while average hourly earnings rose 0.2%, below expectations. The fewer-than-expected jobs created in October and easing wage pressures stoked investor expectations the the Fed is unlikely to deliver another rate hike this year.
• Treasury yields slumped, with the yield on the 2-year Treasury note falling 14 basis points to 4.837%, while the 10-year Treasury yield slipped 11 basis points to 4.559%.
• Oil prices made a downward turn on Friday, spurred by easing Middle East supply concerns amidst the Israel-Hamas war and speculation of the US Federal Reserve halting interest rate hikes. Brent crude futures were recorded at USD84.89/barrel while West Texas Intermediate crude stood at USD80.51/barrel, marking a weekly drop exceeding 6%. Despite warnings of potential wider conflict at Lebanon’s border with Israel by Hezbollah leader Sayyed Hassan Nasrallah, markets remained steady. Meanwhile, recent data out of China has underscored the uncertain demand outlook in the world’s top importer, adding further pressure on demand.
• NHKSI RESEARCH expects JCI to move towards MA20 Resistance amidst regional market optimism, while maintaining MA10 Support which was successfully surpassed last weekend. Addition of stock portfolio positions should still be done gradually while watching for a solid breakout of the crucial Resistance level of 6825-6840.
Company News
• AVIA : Recorded IDR5.2 T in Sales by 3Q23
• CLEO : IDR180 Billion Capital Injection
• MERK : Profit Declined by 12%
Domestic & Global News
• Indonesia’s Economic Growth in 2023, Sri Mulyani Mentions Threshold 5%
• Janet Yellen Assures U.S. Stance on China Won’t Lead to a Global Catastrophe
Download full report HERE.
