Lower Open Called For Indonesia Stock Market

(RTTNews) - The Indonesia stock market on Wednesday wrote a finish to the five-day winning streak in which it had surged more than 340 points or 5.9 percent. The Jakarta Composite Index now rests just above the 5,870-point plateau and it may spin its wheels again on Thursday.

The global forecast for the Asian markets is negative thanks to renewed hostilities in the Middle East. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to split the difference.

The JCI finished sharply lower on Wednesday following losses from the financial shares, cement companies and resource stocks.

For the day, the index slumped 113.12 points or 1.89 percent to finish at 5,873.37 after trading between 5,872.02 and 5,984.47.

The lead from Wall Street is weak as the major averages spent most of the day in the red before finally ending the session mixed.

The Dow tumbled 576.76 points or 1.09 percent to finish at 52,348.39, while the NASDAQ rose 51.96 points or 0.20 percent to close at 25,870.65 and the S&P 500 slipped 21.14 points or 0.28 percent to end at 7,482.71.

The early weakness on Wall Street came amid concerns about a re-escalation of the conflict in the Middle East after President Donald Trump declared the U.S.-Iran ceasefire "over."

Crude oil prices skyrocketed on Wednesday amid renewed Middle East tensions after the U.S. and Iran exchanged fresh strikes. West Texas Intermediate crude for August delivery was up $3.16 or 4.49 percent at $73.60 per barrel.

However, stocks regained ground over the course of the session as crude oil prices pullback off their highs of the session.

Housing stocks moved sharply lower on concerns about the outlook for interest rates, dragging the Philadelphia Housing Sector Index down by 3.8 percent. Substantial weakness was also visible among gold stocks, which tumbled along with the price of the precious metal.

Closer to home, Indonesia will release May figures for retail sales later today; in April, sales were down 3.7 percent on year.