Lower Open Called For Indonesia Stock Market
(RTTNews) - The Indonesia stock market rebounded on Thursday, one day after ending the two-day winning streak in which it had jumped almost 150 points or 2.6 percent. The Jakarta Composite Index now rests just above the 6,500-point plateau although it may slide back under water again on Friday.
The global forecast for the Asian markets is weak thanks to surging oil prices and continued unrest in the Middle East. The European and U.S. markets were down and the Asian bourses are likely to follow suit.
The JCI finished sharply higher on Thursday following gains from the financial shares, energy stocks and agricultural companies.
For the day, the index jumped 107.46 points or 1.68 percent to finish at 6,501.59 after trading between 6,444.40 and 6,514.68.
The lead from Wall Street is negative as the major averages opened under water on Thursday and continued to trend lower as the day progressed, ending near session lows.
The Dow tumbled 703.84 points or 1.32 percent to finish at 52,759.21, while the NASDAQ dropped 263.92 points or 1.00 percent to close at 26,067.17 and the S&P 500 sank 66.82 points or 0.87 percent to end at 7,641.16.
The weakness on Wall Street came as the price of crude oil extended a recent surge amid concerns about the conflict in the Middle East following President Donald Trump's latest threats or economic warfare.
Crude oil prices surged on Thursday after Trump announced his stringent economic measures against Iran. West Texas Intermediate crude for September delivery was up $2.01 or 2.34 percent at $87.84 per barrel.
The sharp increase in the price of crude oil also contributed to a substantial rebound by treasury yields, which had tumbled on Wednesday after the Treasury Department announced upscaled buyback operations for longer-term debt.
Closer to home, Indonesia will release July figures for M2 money supply and Q2 data for current account later today; in June, M2 was up 8.7 percent on year, while the current account deficit was EUR9.1 billion in the previous quarter.
