Today’s Outlook:

• Wall Street ditutup menguat pada hari Jumat, di mana NASDAQ dan S&P500 mencapai rekor tertinggi Wall Street closed higher on Friday, with both the NASDAQ and S&P500 hitting record highs, driven by Technology stocks, as the latest data showing a weakening US labor market increased expectations of an imminent interest rate cut in September. Labor Department data showed US job growth slowed marginally in June, with US Nonfarm Payrolls revealing public sector job additions of 206k in June, albeit above expectations of 191k but down from 218k in May. Meanwhile, the Unemployment Rate (June) rose 0.1% to 4.1%, which is the highest level in more than 2.5 years; while the increase in Average Hourly Wage slowed down, with the percentage growing 0.3% mom in June, down from 0.4% in the previous month. The data, which complemented last week’s US labor report, made the market reckon the chances of the US central bank easing policy in September jumped to 79%, from 66% seen before the data, according to the CME FedWatch Tool. EARNING SEASON: Shares of major US banks fell ahead of second-quarter corporate earnings reports starting next Friday. As noted, higher interest rates and an uncertain economic environment cast a shadow over US bank earnings.
• ASIA & EUROPE MARKETS: Major stock markets in Europe rallied on Friday, as investors digested the results of the UK General Election, where the opposition Labor party posted a legislative election victory, ending the Conservatives’ 14-year rule. In terms of economic indicators, German Industrial Production tumbled 2.5% in May, while the same data in France slumped 2.1%, revealing the weak economic performance in the Eurozone region heading into the summer months. The UK housing sector was equally unhealthy, with housing prices falling below expectations; Eurozone retail sales were similarly in a downward trend.
• COMMODITIES: Crude OIL prices eased on Friday, but were on a positive track for the fourth consecutive week on hopes of strong summer fuel demand in the US. US WTI futures traded 0.4% lower at USD 83.71/barrel, while the BRENT contract dropped 0.3% to USD 87.15/barrel. Oil rose last week on expectations of strong summer demand in the United States, the world’s largest oil consumer, with official data from the Energy Information Agency (EIA) showing that US crude and fuel stocks fell more than expected last week. Market sentiment also received support last week with rising geopolitical tensions in the Middle East, plus the threat of Hurricane Beryl in the Gulf of Mexico.
• JCI hit short term resistance at 7276 high on Friday’s rally, before finally closing at 7253.37 aka rallied 32.48 pts, the highest closing point in over a month; supported by Foreign Net Buy of IDR 558.39bn. NHKSI RESEARCH needs to remind that with RSI entering Overbought territory like this and the candles created in the last two days are Shooting Star and Doji-like, pullback/consolidation is naturally prone to occur, especially when the nearest Support or MA10 is rather far away at the level of 7065-7070. Therefore we need to suggest setting your Trailing Stop. This Monday, Consumer Confidence (Jun) data will more or less determine market interest.

Company News

• PTRO: Prajogo Pangestu’s Company PTRO Signs USD 1.08 Billion Mining Services Agreement
• BBNI: Ready to Join the Big Bank Superapps Competition Through Wondr by BNI
• SGER: IDR 1T Bond Release, Here’s Pefindo’s Explanation

Domestic & Global News
Import Duty on China’s Textiles and Ceramics Increase 200%? Here’s What the Ministry of Finance Says
Not Only Builds Factories, BYD Acquires 20% of Electric Car Distributor Shares in Thailand

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