FX.co ★ Higher Open Anticipated For Indonesia Stock Market

The Indonesian stock market is on an upward trajectory, having gained nearly 20 points or 0.3 percent in consecutive sessions. The Jakarta Composite Index (JCI) is currently just above the 7,135-point mark and is projected to continue this trend on Tuesday. This positive outlook for the Asian markets is sparked by global optimism over the future of interest rates. European and U.S. markets have posted strong gains and it is anticipated that Asian markets will follow suit.

On Monday, the JCI saw a slight increase driven by gains in resource stocks and mixed results in the financial sector. The index ended the day at 7,135.89, after fluctuating between 7,102.69 and 7,178.77 points. Among the notable market movers, Bank CIMB Niaga decreased by 1.37 percent while Bank Mandiri saw an increase of 2.03 percent. There were mixed reactions from other banks, with Bank Danamon Indonesia, Bank Negara Indonesia and Bank Central Asia experiencing losses, while Bank Rakyat Indonesia reported gains.

In other sectors, Indosat Ooredoo Hutchison and Semen Indonesia saw growth, while Indocement and Astra International experienced losses. On a positive note, Vale Indonesia had a strong increase of 5.41 percent and Timah surged by 3.45 percent.

Following Wall Street's trend, most major averages began on a high note on Monday and remained firmly positive throughout the trading day. The Dow increased by 0.46 percent to end at 38,852.27, the NASDAQ improved by 1.19 percent to close at 16,349.25, and the S&P 500 added 1.03 percent to finish at 5,180.74.

Investors' confidence has been boosted by Federal Reserve Chair Jerome Powell's relatively dovish comments and weaker-than-expected job growth in April. These factors have eased concerns that the Fed might consider raising rates and instead raised hopes for a rate cut in the forthcoming months. According to CME Group's FedWatch Tool, there is an 83.5 percent probability of rates being lowered by September.

Lastly, crude oil futures inched higher on Monday following Saudi Arabia's decision to increase its selling price for the European and Asian markets. West Texas Intermediate Crude oil futures for June ended with a gain of $0.37 or 0.47 percent at $78.48 a barrel.