IHSG rebounds tracking global markets amid Trump signals end of war
Jakarta — Indonesia’s Composite Stock Index (IHSG) on the Indonesia Stock Exchange (IDX) rebounded on Tuesday, tracking global markets higher, driven by US President Donald Trump’s signalling that war is nearly concluded.
The IHSG opened stronger at 7,443.05, gaining 105.68 points or 1.44 per cent. Meanwhile, the 45 leading stocks index, the LQ45, rose 9.98 points or 1.33 per cent to 760.56.
“Trump’s statement reduced geopolitical risk premiums and triggered short covering and dip-buying in equity markets,” said Liza Camelia Suryanata, Head of Research at Kiwoom Securities Indonesia, in a statement in Jakarta on Tuesday.
US President Donald Trump stated that military operations against Iran were “very complete”, with the conflict progressing far more rapidly than initial estimates of 4-5 weeks.
Oil prices fell sharply following reports that G7 nations were discussing the release of strategic petroleum reserves to boost global supply. WTI crude dropped 9.99 per cent to $85.30 per barrel, whilst Brent crude fell 10.40 per cent to $88.67 per barrel at 09:20 WIB on Tuesday morning.
The United States granted a temporary 30-day exemption allowing the sale of stranded Russian oil at sea to India, whilst also considering releasing oil from the Strategic Petroleum Reserve, which holds approximately 415 million barrels.
“Markets now estimate a 77 per cent probability of a Federal Reserve rate cut in July according to Fed Funds Futures, with a full rate reduction expected by September,” said Liza.
Several countries have begun taking emergency measures to address surging energy prices. China is capping domestic fuel prices, South Korea is considering similar policies for the first time in nearly 30 years, and Japan is preparing for possible strategic reserve releases and deployment of government emergency funds.
On Monday’s trading, European stock markets were uniformly weaker, including the Euro Stoxx 50 declining 0.54 per cent, the UK’s FTSE 100 falling 0.34 per cent, Germany’s DAX index dropping 0.77 per cent, and the CAC index declining 0.98 per cent.
Meanwhile, US Wall Street indices moved solidly higher on Monday, with the Nasdaq Composite rising 1.4 per cent to 22,695.95, the S&P 500 gaining 0.8 per cent to 6,795.99, and the Dow Jones advancing 1.5 per cent to 47,740.95.
Asian regional stock markets gained on Tuesday morning, including Japan’s Nikkei index climbing 1,914.50 points or 3.63 per cent to 54,643.19, Hong Kong’s Hang Seng rising 363.26 points or 1.43 per cent to 25,771.72, China’s Shanghai index gaining 17.36 points or 0.42 per cent to 4,113.96, and Singapore’s Strait Times index advancing 80.18 points or 1.69 per cent to 4,836.79.