Indonesia Stock Market May Test Support At 5,800 Points

The Indonesia stock market on Thursday snapped the two-day winning streak in which it had gathered more than 140 points or 2.3 percent. The Jakarta Composite Index now rests just above the 5,845-point plateau and it may open under pressure again on Friday.

The global forecast for the Asian markets is soft on geopolitical concerns, interest rate fears and a drop in crude oil prices. The European and U.S. markets were down and the Asian bourses figure to follow suit.

The JCI finished modestly lower on Thursday following weakness from the cement and resource stocks, while the financials came in mixed.

For the day, the index sank 23.38 points or 0.40 percent to finish at 5,845.24 after trading between 5,811.92 and 5,858.79.

Among the actives, Lotte Chemical soared 3.07 percent, while Bank Pan Indonesia surged 6.51 percent, Jasa Marga tumbled 2.27 percent, SLJ Global skidded 1.96 percent, Bank Danamon Indonesia shed 1.05 percent, Bank Central Asia retreated 1.77 percent, Bank Mandiri dropped 1.14 percent, Bank Negara Indonesia declined 1.71 percent, Bank Rakyat Indonesia collected 0.65 percent, Indosat spiked 1.92 percent, Bumi Resources plunged 2.75 percent, Vale Indonesia lost 1.84 percent, Aneka Tambang was down 1.92 percent, Indocement fell 1.63 percent and Semen Indonesia, Bukit Darmo Property, XL Axiata, Bank MNC Internasional and Voksel Electric were unchanged.

The lead from Wall Street is broadly negative as stocks moved sharply lower on Thursday. The major averages attempted a recovery after seeing early weakness but saw a significant pullback as the day progressed.

The Dow shed 327.36 points or 1.27 percent to finish at 25,379.32, while the NASDAQ lost 157.56 points or 2.06 percent to 7,485.14 and the S&P fell 40.43 points or 1.44 percent to 2,768.78.

The sell-off on Wall Street came after Treasury Secretary Steven Mnuchin said he will not attend

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Global stocks tumble on souring sentiment, oil falls

Traders work on the floor of the New York Stock Exchange in New York. — Reuters pic

NEW YORK, Oct 19 ― Stocks fell sharply yesterday while the Japanese yen rose in a move toward safety assets, with traders citing the Sino-US trade war, Italy’s budget concerns and a widening gap between the United States and Saudi Arabia.

European stocks closed near the day’s lows and Wall Street slid after the European Commission said Italy’s 2019 budget draft is in “particularly serious” breach of EU budget rules, a step that prepares the ground for what would be an unprecedented rejection of a member state’s fiscal plan.

Italy’s 5-year yield hit its highest since October 2013 and its 10-year yield brushed against a 4-1/2 year high. The safe-haven yen rose for the eighth session in the last 11.

Also weighing on market sentiment, US Treasury Secretary Steven Mnuchin said he would not attend next week’s investment conference in Saudi Arabia. US President Donald Trump said on Thursday it “certainly looks” like US-based Saudi journalist Jamal Khashoggi is dead.

Khashoggi was last seen entering the Saudi consulate in Istanbul.

Worries over rising US rates and a stronger dollar added to the sour tone, as well as the effect of a trade war between Washington and Beijing. Shanghai’s benchmark stock index tumbled overnight to close at a near four-year low and China’s premier warned of risks to the economy.

“The acceleration in market decline coincided with news that Treasury Secretary Mnuchin is the latest official to pull out of the upcoming Saudi Arabian investment conference,” said Ryan Larson, head of US equity trading at RBC Global Asset Management in Chicago.

“Certainly other factors are at play as well ― China being down 2.9 per cent, the Italian budget debate and potential spillover implications

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Losses May Accelerate For Hong Kong Stock Market

The Hong Kong stock market has moved lower in two of three trading days since the end of the three-day winning streak in which it had advanced more than 620 points or 2.4 percent. The Hang Seng Index now rests just above the 25,450-point plateau and it’s expected to open in the red again on Friday.

The global forecast for the Asian markets is soft on geopolitical concerns, interest rate fears and a drop in crude oil prices. The European and U.S. markets were down and the Asian bourses figure to follow suit.

The Hang Seng finished barely lower on Thursday as losses from the financials and oil and insurance companies were tempered by support from the properties and casinos.

For the day, the index eased 7.71 points or 0.03 percent to finish at 25,454.55 after trading between 25,261.72 and 25,674.66.

Among the actives, China Petroleum and Chemical (Sinopec) plummeted 4.27 percent, while CNOOC plunged 2.01 percent, Sino Land soared 1.47 percent, Sands China spiked 1.20 percent, CSPC Pharmaceutical jumped 1.12 percent, BOC Hong Kong tumbled 1.04 percent, WH Group climbed 1.04 percent, New World Development advanced 1.01 percent, Galaxy Entertainment perked 1.00 percent, Ping An Insurance skidded 0.82 percent, China Mengniu Dairy gathered 0.66 percent, AIA Group added 0.65 percent, China Mobile gained 0.58 percent, Hong Kong & China Gas collected 0.27 percent, China Life Insurance shed 0.24 percent, Industrial and Commercial Bank of China lost 0.19 percent and Tencent Holdings fell 0.14 percent.

The lead from Wall Street is broadly negative as stocks moved sharply lower on Thursday. The major averages attempted a recovery after seeing early weakness but saw a significant pullback as the day progressed.

The Dow shed 327.36 points or 1.27 percent to finish at 25,379.32, while the NASDAQ lost 157.56 points or 2.06 percent

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Asia shares extend slump as global sentiment sours

People walk past an electronic board showing Japan’s Nikkei average and Japanese yen’s exchange rate against the U.S. dollar outside a brokerage in Tokyo Thomson Reuters By Andrew Galbraith

SHANGHAI (Reuters) – Stocks in Asia fell on Friday as global sentiment soured on issues ranging from trade worries, Italy’s 2019 budget, higher U.S. interest rates and growth concerns in China that led to a slump in Chinese shares in the previous session.

Early in the trading day, MSCI’s broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> was 0.4 percent weaker following losses on Wall Street overnight.

The Dow Jones Industrial Average <.DJI> fell 1.27 percent, the S&P 500 <.SPX> lost 1.44 percent and the Nasdaq Composite <.IXIC> dropped 2.06 percent.

Australian shares <.AXJO> were down 0.6 percent, while Japan’s Nikkei stock index <.N225> was 1.7 percent lower.

“Markets continue to digest the combination of higher U.S. rates, ongoing trade tension and Chinese growth concerns,” analysts at ANZ said in a note.

On Thursday, the flight to safe-haven assets partly offset a rise in U.S. Treasury yields sparked by worries about the pace of interest rate increases by the U.S. Federal Reserve. Early in Asia on Friday, the 10-year yield was higher at 3.1767 percent, compared with a U.S. close of 3.175 percent on Thursday.

The two-year yield , sensitive to expectations of higher Fed fund rates, edged up to 2.8741 percent.

Investors are looking to third-quarter GDP data out of China, due Friday, for indications of a slowing economy. The numbers are expected to show the weakest pace of growth since the global financial crisis amid a worsening trade war with the United States.

China’s premier said this week that the country’s economic faces increased downward pressure, but said the government will take targeted measures to stabilize growth.

The benchmark

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ASX set for sharp falls as Wall St slides on Saudi Arabia, Italy concerns

US stocks declined further after US Treasury Secretary Steven Mnuchin pulled out of an investor conference in Saudi Arabia as the White House awaited the outcome of investigations into the disappearance of Saudi journalist Jamal Khashoggi.

Mnuchin’s decision sparked worries of potential strain in US-Saudi relations, especially if Saudi leaders were found to have been involved in Khashoggi’s disappearance. Investors raised concern that if Saudi Arabia were sanctioned, it could restrict oil supply and prompt a rise in energy prices.

“As soon as the news came out it increased the selling,” said Robert Pavlik, chief investment strategist at SlateStone Wealth LLC in New York. “Anything that has a semblance of the possibility of trouble, people in this environment see it as a much larger problem than it may really be.”

US stocks had opened lower as Chinese stocks fell overnight, sparking fresh worries about the impact of trade tensions on China’s economy.

Concerns over rising interest rates following Wednesday’s release of the Federal Open Market Committee’s minutes from its September meeting also pressured Wall Street’s major indexes.

“It’s the usual suspects, namely the trade war and rising rates,” said Brendan Erne, director of portfolio implementation at Personal Capital in San Francisco. “They’re still a double whammy.”

Both those factors were reflected in weak earnings reports from Cessna business jet maker Textron Inc and equipment rental company United Rentals Inc.

Textron shares fell 11.3 per cent and United Rentals shares sank 15.0 per cent, while Sealed Air Corp shares slid 8.3 per cent after the packaging company cut its full-year profit outlook due to higher raw material and freight costs.

The Dow Jones Industrial Average fell 327.23 points, or 1.3 per cent, to 25,379.45, the S&P 500 lost 40.43 points, or 1.4 per cent, to 2,768.78 and the Nasdaq Composite dropped 157.56 points, or 2.1 per cent, to 7,485.14.

Among

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Stocks Fall (Again) as China Concerns Become a Drag

Stocks resumed their October tumble on Thursday, led by a drop in technology stocks that tracked a sell-off in China overnight.

Tech firms led the Wall Street sell-off, with the tech-heavy Nasdaq composite index and a closely watched index of semiconductor stocks slumping more than 2 percent. The Standard & Poor’s 500-stock index fell 1.4 percent, leaving the broad stock market index down nearly 5 percent this month.

A sharp decline in Chinese stocks set the tone for the tech-driven drop. China’s currency, the yuan, hit a 21-month low, amid the tariff fight between China and the United States, the world’s largest economies.

“Perceptions in markets are evolving, and more people are nervous that this is going to be a long, drawn-out affair,” said Robin Brooks, chief economist at the Institute of International Finance, a trade group and research provider.

China is expected to release data on Friday on how its economy fared in the three months through September. But growing concerns about the health of its economy, along with rising interest rates that could slow the American economy, have made investors jumpy and worried that a near-perfect investing environment — low inflation, strong growth and relatively low interest rates — is becoming tougher to navigate.

Here’s a rundown of what has been happening in the stock market.

Trading was volatile

The benchmark S.&P. was down as much as 1.9 percent. It ended the day down 1.4 percent.

Stocks started the day slightly lower after a big sell-off in China, but the drop picked up pace after the Treasury secretary, Steven Mnuchin, said he would not attend a financial conference in Saudi Arabia amid the investigation into the disappearance of a dissident Saudi journalist.

Why has October been so lousy

The selling on Thursday came amid a bout of big swings for

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Dow Drops 327 Points Amid Fears Over Italy, Saudi Arabia

U.S. stocks fell more than 1 percent on Thursday as the European Commission issued a warning regarding Italy’s budget and concerns mounted over the possibility of strained relations between the United States and Saudi Arabia, further denting investors’ appetite for risk amid global trade tensions and rising interest rates.

The benchmark S&P 500 index closed just above its 200-day moving average, a key indicator of long-term price trends.

S&P 500 technology and consumer discretionary stocks fell more than 2 percent, as did the tech-heavy Nasdaq. Among the S&P’s major sectors, only utilities and real estate, considered defensive, avoided losses.

Wall Street’s major indexes pared early losses in morning trading but reversed course to fall further as European markets closed. Italian bond yields jumped after the European Commission deemed the country’s 2019 budget draft to be in breach of EU rules.

U.S. stocks declined further after U.S. Treasury Secretary Steven Mnuchin pulled out of an investor conference in Saudi Arabia as the White House awaited the outcome of investigations into the disappearance of Saudi journalist Jamal Khashoggi.

Mnuchin’s decision sparked worries of potential strain in U.S.-Saudi relations, especially if Saudi leaders were found to have been involved in Khashoggi’s disappearance. Investors raised concern that if Saudi Arabia were sanctioned, it could restrict oil supply and prompt a rise in energy prices.

“As soon as the news came out it increased the selling,” said Robert Pavlik, chief investment strategist at SlateStone Wealth LLC in New York. “Anything that has a semblance of the possibility of trouble, people in this environment see it as a much larger problem than it may really be.”

U.S. stocks had opened lower as Chinese stocks fell overnight, sparking fresh worries about the impact of trade tensions on China’s economy.

Concerns over rising interest rates following Wednesday’s release of the

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US stocks fall on worries about Saudi Arabia, Italy

Business Traders work on the floor of the New York Stock Exchange. (AP Photo/Richard Drew) 19 Oct 2018 04:23AM(Updated: 19 Oct 2018 04:30AM) Share this content

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NEW YORK: Wall Street stocks tumbled on Thursday (Oct 18) on rising worries over US-Saudi relations after the suspected murder of journalist Jamal Khashoggi and unease over the eurozone due to Italy’s controversial budget plans.

The Dow Jones Industrial Average ended down 327.23 points (1.27 per cent) at 25,379.45.

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The broad-based S&P 500 dropped 40.43 points (1.44 per cent) to 2,768.78, while the tech-rich Nasdaq Composite Index sank 157.56 points (2.06 per cent) to 7,485.14.

Stocks opened lower but fell much further at midday after Treasury Secretary Steven Mnuchin announced he was withdrawing from a big investment summit in Saudi Arabia, the most concrete sign the Trump administration is distancing itself from Saudi Arabia since Khashoggi’s disappearance this month intensified scrutiny of the big oil exporter.

At around the same time, European Central Bank Chief Mario Draghi reportedly told EU leaders at a Brussels summit that nations should adhere to the EU’s budget rules – comments that were seen as a swipe at Italy, which plans a steep increase in deficit spending.

Worries about the EU and Saudi Arabia added to concerns about higher US interest rates and the fallout from trade conflicts, worries that more than offset generally solid earnings reports.

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“No matter what companies report, the market is not going to respond favorably,” said Tom Cahill of Ventura Wealth Management. “People are on edge and they’re willing to sell first and ask questions later.”

Jack Ablin, chief investment officer at Cresset Wealth Advisors, said there were new questions about the US relationship with Saudi Arabia at a time when the Trump administration’s aggressive trade policies already

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US Market Indexes Close Lower Thursday, Posting Steeper Monthly Losses

The Dow Jones Industrial Average closed at 25,379.45 on Thursday with a loss of -327.23 points or -1.27%. The S&P 500 closed at 2,768.78 for a loss of -40.43 points or -1.44%. The Nasdaq Composite closed at 7,485.14 for a loss of -157.56 points or -2.06%. The VIX Volatility Index was higher at 19.84 for a gain of 2.44 points or 14.02%.

Thursday’s market movers

U.S. market indexes closed lower with higher trading volatility Thursday. The recent selloff has the three major indexes reporting losses over the past 30-day period. The Nasdaq is reporting the greatest loss at -5.9%.

The Treasury has announced a new eight-week Treasury security to complement the one-month and the three-month Treasury. Meanwhile, Treasury rates remain at elevated levels and the Treasury yield curve continues to flatten across maturities.

Economic reports affecting market trading on Thursday included the following:

Jobless claims were down 5,000 at 210,000. The Conference Board’s Leading Economic Indicators Index increased 0.5% in September.

In the Dow Jones Industrial Average, the following stocks led losses:

Small-cap stocks

In small-caps, the Russell 2000 closed at 1,560.75 for a loss of -28.85 points or -1.81%. The S&P 600 closed at 972.21 for a loss of -18.66 points or -1.88%. The Dow Jones Small-Cap Growth TSM Index closed at 9,751.61 for a loss of -194.27 points or -1.95%. The Dow Jones Small-Cap Value TSM Index closed at 9,684.05 for a loss of -136.03 points or -1.39%.

Other notable indexes

Other notable index closes included the S&P 400 Mid-Cap Index at 1,884.59 for a loss of -28.83 points or -1.51%; the S&P 100 at 1,232.83 for a loss of -18.83 points or -1.50%; the Russell 3000 at 1,633.28 for a loss of -24.55 points or -1.48%; the Russell 1000 at 1,530.80 for a loss of

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US stock market drops again, wiping out most Tuesday gains

NEW YORK — U.S. stocks slumped again Thursday as investors continued to sell shares of technology and internet companies, industrials, and companies that rely on consumer spending.

Several industrial companies tumbled after releasing weak quarterly reports, and European stocks also fell as European Union leaders criticized Italy’s spending plans.

At the start of trading, stocks took small losses as bond prices fell and interest rates spiked. While the gain in interest rates didn’t last, stocks turned lower late in the morning, and by the end of the day they had wiped away most of their big rally from Tuesday.

Stocks have skidded over the last two weeks, and there are signs investors are worried about future economic growth. The S&P 500 has fallen 5.5 percent in volatile trading since Oct. 3, and technology, industrial and energy companies have taken some of the biggest losses. Those companies tend to do better when the economy is growing more quickly and consumers and businesses have more money to spend.

“If uncertainty starts to creep in around trade or growth, that could be a risk to the recovery in … corporate spending,” said Jill Carey Hall, senior U.S. equity strategist for Bank of America Merrill Lynch. She said investors will monitor company reports over the next few weeks to learn about their business forecasts and plans.

European leaders expressed concern about the Italian government’s proposal to increase spending and widen its budget deficit. European Union budget chief Pierre Moscovici told Italy’s economic minister that the new government’s plans make it unlikely that Italy will be able to reduce its public debt to levels agreed upon by EU countries.

The S&P 500 index shed 40.43 points, or 1.4 percent, to 2,768.78. The Dow Jones Industrial Average lost 327.23 points, or 1.3 percent, to 25,379.45. It

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