Losing Streak May Continue For Indonesia Stock Market

(RTTNews) - The Indonesia stock market has finished lower in five straight sessions, tumbling more than 300 points or 4.4 percent along the way. The Jakarta Composite Index now sits just above the 6,070-point plateau and it's expected to open under water again on Thursday.

The global forecast for the Asian markets is mixed to lower as a rebound in crude oil prices may be tempered by an improved outlook for interest rates. The European and U.S. markets were mostly lower and the Asian bourses are expected to open in similar fashion.

The JCI finished modestly lower again on Wednesday following losses from the financial shares, industrial stocks and agricultural companies.

For the day, the index dropped 50.56 points or 0.83 percent to finish at the daily low of 6,071.14 after peaking at 6,187.05.

The lead from Wall Street is weak as the major averages opened higher but slumped as the day progressed, finally ending mixed.

The Dow dropped 443.87 points or 0.86 percent to finish at 50,906.05, while the NASDAQ added 63.52 points or 0.24 percent to close at 26,861.06 and the S&P 500 sank 19.30 points or 0.25 percent to end at 7,651.54.

The early strength on Wall Street reflected a positive reaction to a closely watched report on consumer price inflation in the U.S., which showed that consumer prices rose less than expected in August.

Traders may have felt the data reduced the chances the central bank will raise interest rates later this month. According to CME Group's FedWatch Tool, the chances the Fed will raise rates by a quarter point have fallen to 34.9 percent from 50.9 percent on Tuesday.

But the markets continued to be weighed by bond prices, which saw the ten-year close higher for the seventh consecutive session to its highest closing level since May 2002.

In economic news, payroll processor ADP said private sector employment in the U.S. jumped by more than expected in the month of September.

Crude oil prices rebounded on Wednesday amid lingering uncertainty that the U.S. and Iran will reach a deal to end their prolonged conflict. West Texas Intermediate crude for November delivery climbed $1.02 or 1.1 percent to $90.40 a barrel.

Closer to home, Indonesia will release August trade data and September inflation numbers later today. Imports are expected to rise 31.7 percent on year, up from 27.02 percent in July. Exports are called higher by an annual 4.2 percent, easing from 6.05 percent in the previous month. The trade surplus is seen at $0.60 billion, up from $0.13 billion a month earlier. Inflation is tipped to rise 0.31 percent on month and 3.30 percent on year, up from 0.21 percent on month and 3.19 percent on year in August.