Soft Start Expected For Indonesia Stock Market

(RTTNews) - The Indonesia stock market has finished lower in two of three trading days since the end of the two-day winning streak in which it had collected more than 80 points or 1.3 percent. The Jakarta Composite Index now rests just above the 6,365-point plateau and it may extend its losses on Tuesday.

The global forecast for the Asian markets is weak on continuing concerns over the conflict in the Middle East and the resulting spike in crude oil prices. The European markets were mixed and flat and the U.S. bourses were slightly soft and the Asian markets figure to split the difference.

The JCI finished modestly lower on Monday following losses from the resource stocks and financial shares. For the day, the index sank 44.28 points or 0.69 percent to finish at 6,365.37 after trading between 6,362.76 and 6,462.74.

The lead from Wall Street is soft as the major averages hugged the line for much of the day before fading midday and ending in the red.

The choppy trading on Wall Street came as traders look ahead to key U.S. inflation data in the coming days.

The Labor Department is scheduled to release reports on consumer and producer inflation on Wednesday and Thursday, respectively. On the heels of last Friday's weak jobs report, the data could impact the outlook for interest rates.

Traders are also keeping an eye on developments in the Middle East, where Iran and Oman are reportedly close on a deal regarding the Strait or Hormuz but Tehran has indicated it is resisting talks with the U.S.

Crude oil prices skyrocketed as a result on Monday as expectations of an early reopening of the Strait of Hormuz began to fade, increasing concerns of military re-escalation. West Texas Intermediate crude for September delivery was up $4.07 or 5.21 percent at $82.25 per barrel.

Closer to home, Indonesia will see June figures for retail sales later today; in May, sales slumped 3.9 percent on year.