FX.co ★ Indonesia Bourse May Extend Tuesday's Losses

On Tuesday, the Indonesian stock market snapped its two-day winning trend, during which it had seen a growth of roughly 20 points or 0.3%. As it stands, the Jakarta Composite Index just surpasses the 7,120-point mark, hinting at potential losses on Wednesday.

GLOBAL FORECAST: The global prediction for the Asian market seems uncertain, echoing the current sentiment on interest rates. European markets witnessed a surge, as U.S. stock markets reflected a mix of flat and diverse performance, a trend that is expected to spill over to the Asian markets.

JAKARTA COMPOSITE INDEX: On Tuesday, the JCI ended on a slightly lower note as gains from resource firms offset the decline in financial and telecom firms. For the day, the index dropped 12.28 points or 0.17% finishing at 7,123.61 points and trading between 7,108.18 and 7,159.77.

MARKET MOVERS: Within the active equities, Bank CIMB Niaga rose by 1.11%, while Bank Danamon Indonesia decreased by 0.37%. Bank Negara Indonesia saw a fall of2.29%, and Bank Central Asia fell by 1.02%. Other notable movers included Bank Rakyat Indonesia, which fell by 2.51%, and Indosat Ooredoo Hutchison dropping by 2.10%.

WALL STREET OUTLOOK: Opening at a higher note, the Wall Street trend quickly faded resulting in a mixed and barely altered finish. The Dow earned 31.99 points or 0.08% finishing at 38,884.26, and the NASDAQ lost 16.69 points or 0.10% ending at 16,332.56. The S&P 500 saw an increase of 6.96 points or 0.13% finishing at 5,187.70.

INTEREST RATES: Wall Street maintains a mild strength due to renewed optimism over the interest rates' outlook. The Federal Reserve Chair, Jerome Powell, made fairly dovish remarks accompanied by weaker-than-anticipated job growth in April, significantly dispelling concerns over a possible raise in rates. However, the President of the Minneapolis Federal Reserve, Neel Kashkari, indicated that interest rates might need to sustain current levels for a "prolonged duration."

OIL OUTLOOK: Concerns over the outlook for global oil demand led to oil futures settling slightly lower on Tuesday. West Texas Intermediate Crude oil futures for June ended lower by $0.10 at $78.38 a barrel.