Trump Cancels Attack, Time for IHSG to Rise from the Grave!

Indonesia’s stock exchange is expected to reverse direction and strengthen today, Wednesday (8 April 2026), following US President Donald Trump’s announcement of a two-week ceasefire agreement with Iran on Tuesday (7 April 2026). Trump’s decision to cancel the threat of a massive attack, which he had previously issued, came less than two hours before the deadline for Tehran to reopen the Strait of Hormuz expired. Citing Reuters, Trump stated that significant progress in communications between the two parties was the main reason for his willingness to postpone military action. He claimed to have received a peace proposal from the Iranian side that was deemed reasonable for further discussion. “Iran has presented a 10-point proposal that serves as a workable basis for negotiations. I expect that agreement to be finalised and refined during this two-week window,” Trump said. Stock Market Rebound? The Composite Stock Price Index (IHSG) has already collapsed for three consecutive days, weakening by 2.97% from last Thursday to Monday. The IHSG has even touched the 6,900 level and plummeted 23.6% from its peak on 19 January 2026 (9,133.87). Trump’s policy is hoped to serve as a positive catalyst today. Moreover, several stock exchanges have already turned green. Wall Street mostly strengthened in Tuesday’s trading, or early Wednesday Indonesian time. The indices rose amid a weakening US dollar and government bonds, as well as investors preparing for the impasse outcome between the US and Iran. The S&P index rose 0.08% to close at 6,616.85, while the Nasdaq Composite strengthened 0.10% to 22,017.85. On the other hand, the Dow Jones Industrial Average fell 85.42 points or 0.18% to 46,584.46. Meanwhile, US stock futures contracts or Dow Futures surged after President Donald Trump said he was suspending the attack on Iran for two weeks, right before the 20:00 ET deadline. This decision temporarily halts the five-week conflict that has closed vital waterways for global energy supplies and shaken stock prices. Futures contracts linked to the Dow Jones Industrial Average rose 967 points or 2.1%. S&P 500 futures rose 2.1%, while Nasdaq 100 futures surged 2.3%. Conversely, West Texas Intermediate crude oil futures plunged around 18% to below US$93 per barrel following Trump’s statement. The US dollar index has also weakened significantly to 98 on Wednesday morning, from 99.86 in yesterday’s trading. Asian markets have also strengthened this Wednesday morning, with South Korea’s Kospi index surging 5.3%, while the small-cap Kosdaq index rose 3.4%. Blue-chip stocks like Samsung Electronics and SK Hynix jumped 7.25% and 9.2%, respectively. In Japan, the Nikkei 225 index widened its gains to 4.5%, while the Topix index rose 3.2%. Australia’s S&P/ASX 200 index strengthened 2.7%. Hong Kong markets are also expected to surge upon reopening after the holiday. Hang Seng Index futures are at 25,233, compared to the last close at 25,116.53. “In the longer term, energy prices do tend to drive global inflation. But if there is now confidence or indications that energy prices could fall back, that will be good for inflation and also positive for central bank rate cut prospects,” said Josh Rubin, portfolio manager at Thornburg Investments.