Lower interest rates await Fed rate cut, says govt (2 X 25)
Lower interest rates await Fed rate cut, says govt (2 X 25)
Lower interest rates await Fed rate cut: Govt
JAKARTA (JP): The government said on Wednesday it expected Bank Indonesia's interest rates to fall after the United States' Federal Reserves lowered its rates sometime in late August.
Coordinating Minister for the Economy Dorodjatun Kuntjoro- Jakti said if the Fed lowered its rates, it was time for Indonesia to follow suit.
"We're waiting for the Fed's decision to cut its rates for the seventh time now, which some say will be on Aug. 21," Dorodjatun told the media, after meeting with House of Representatives Speaker Akbar Tandjung.
His statement came after Bank Indonesia hiked its interest rate to 17.3 percent on Wednesday from 17.13 percent in the previous week.
2. MARKET Asia stocks subdued, HK recovers (1 x 35)
SINGAPORE (Reuters): Hong Kong stocks staged a late rally on the back of impressive results from China's top computer maker on Wednesday, while Tokyo cut into hefty gains made a day earlier as most Asian markets drifted in subdued ranges.
Tokyo shares, which enjoyed their biggest percentage gain since April on Tuesday after a surprise easing by the Bank of Japan of its super-loose monetary policy, saw previous day's gainers such as banks and brokerages come under pressure.
Japanese technology stocks such as Advantest Corp were also hit by the 0.89 percent fall on the U.S. Nasdaq index.
3. GOLD Europe gold rallies, PGMs drops (1 x 35)
LONDON (Reuters): Gold was comfortably holding overnight gains in morning trade in Europe on Wednesday, as the euro extended its gains against the U.S. dollar and traders said they saw bullion poised to attack higher levels.
By 1105 GMT (6.05 p.m. Jakarta time) spot gold was indicated at $277.00/277.50 a troy ounce, up from Tuesday's New York close at $276.30/276.80. The metal was fixed in the morning at $276.35 an ounce, versus a previous fix at $274.50.
"Things don't look bad at all," a trader said.
In the platinum group metals, platinum and palladium re- visited last week's lows.
By 1100 GMT, spot platinum was indicated at $425.00/430.00, down from last New York quote of $437.50/442.50. It was fixed at $427.00 a troy ounce in the morning, $13 down from the previous fixing.
4. OIL
Oil creeps higher on stocks data (2 x 22) Oil creeps higher on stocks data
LONDON (Reuters): Oil prices climbed on Wednesday as two large U.S. refineries reported production problems and latest data showed a fall in U.S. gasoline stocks.
North Sea benchmark Brent Blend crude oil jumped nine cents to $26.08 per barrel at 1020 GMT (5.20 p.m. Jakarta time), while U.S. futures for West Texas Intermediate (WTI) crude oil gained eight cents at $28.09 per barrel.
Data from industry group American Petroleum Institute (API) issued after the market close on Tuesday showed U.S. gasoline stocks falling by 0.8 percent to 207 million barrels last week.