Indonesia Shares May Reclaim Tuesday's Losses

(RTTNews) - The Indonesia stock market on Tuesday snapped the three-day winning streak in which it had advanced almost 140 points or 2.1. The Jakarta Composite Index now sits just beneath the 6,845-point plateau although it may tick higher again on Wednesday.

The global forecast for the Asian markets suggests mild upside on continuing optimism over the outlook for interest rates. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to split the difference.

The JCI finished modestly lower on Tuesday following mixed performances from the financial shares and resource stocks.

For the day, the index lost 35.05 points or 0.51 percent to finish at 6,843.79.

Among the actives, Bank CIMB Niaga declined 1.15 percent, while Bank Mandiri dropped 0.84 percent, Bank Danamon Indonesia collected 0.37 percent, Bank Negara Indonesia was down 0.60 percent, Bank Central Asia sank 0.83 percent, Bank Rakyat Indonesia advanced 0.96 percent, Indosat Ooredoo Hutchison stumbled 1.31 percent, Indocement rose 0.26 percent, Semen Indonesia fell 0.39 percent, Indofood Suskes added 0.39 percent, United Tractors tumbled 1.58 percent, Astra International retreated 1.69 percent, Astra Agro Lestari lost 0.71 percent, Aneka Tambang shed 0.59 percent, Vale Indonesia gained 0.41 percent, Timah plummeted 2.90 percent, Bumi Resources plunged 2.68 percent and Energi Mega Persada was unchanged.

The lead from Wall Street is mildly positive as the major averages shook off early weakness to quickly move higher and finish with modest gains.

The Dow added 56.74 points or 0.17 percent to finish at 34,152.74, while the NASDAQ jumped 121.08 points or 0.90 percent to end at 13,639.86 and the S&P 500 rose 12.40 points or 0.28 percent to close at 4,378.38.

Profit taking contributed to the initial weakness on Wall Street as traders looked to cash in on the recent strength in the markets. But selling pressure waned shortly after the start of trading, with continued optimism about the outlook for interest rates contributing to the rebound.

The rebound by stocks also came as treasury yields showed a notable move back to the downside after surging in the previous session.

Traders also looked ahead to speeches by Federal Reserve Chair Jerome Powell later today and Thursday. Powell is due to deliver opening remarks at the Division of Research and Statistics Centennial Conference and participate in a policy panel discussions.

Crude oil prices tumbled on Tuesday as concerns about the outlook for fuel demand offset recent decisions by Russia and Saudi Arabia to extend production cuts to the end of the year. West Texas Intermediate Crude oil futures for December sank $3.45 or 4.3 percent at $77.37 a barrel.