Higher Open Called For Indonesia Stock Market

(RTTNews) - The Indonesia stock market on Wednesday halted the two-day winning streak in which it had added more than 80 points or 1.2 percent. The Jakarta Composite Index now rests just beneath the 6,600-point plateau although it's expected to move back to the upside again on Thursday.

The global forecast for the Asian markets is mixed to higher on optimism over the outlook for interest rates. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The JCI finished slightly lower on Wednesday as losses from the food and technology companies were mitigated by support from the financials and industrials.

For the day, the index dipped 4.17 points or 0.06 percent to finish at 6,595.78 after trading between 6,561.00 and 6,629.54.

The lead from Wall Street is positive as the major averages opened higher on Wednesday and remained firmly in the green throughout the trading day, ending near session highs.

The Dow jumped 295.07 points or 0.56 percent to finish at 53,061.95, while the NASDAQ added 118.05 points or 0.45 percent to end at 26,217.83 and the S&P 500 gained 35.13 points or 0.46 percent to close at 7,666.60.

The strength on Wall Street reflected bargain hunting following the recent slump, which dragged the S&P 500 down to its lowest levels in nearly a month. Early buying interest was also generated by a pullback in treasury yields.

Even as yields bounced well off their early lows, a report from payroll processor ADP showing weaker than expected private sector job growth eased concerns about the outlook for interest rates.

Traders may be hopeful that signs of weakness in the labor market will lead the Federal Reserve to refrain from raising interest rates later this month even amid concerns about inflation.

Crude oil prices jumped on Wednesday after the U.S. commenced its second round of attacks against Iran to escalate hostilities. West Texas Intermediate crude for October delivery was up $0.97 or 1.08 percent at $91.19 per barrel.