Indonesia Shares Poised To Bounce Higher Again On Wednesday

(RTTNews) - The Indonesia stock market on Tuesday snapped the four-day winning streak in which it had climbed almost 110 points or 1.6 percent. The Jakarta Composite Index now rests just beneath the 6,720-point plateau although it's expected to open in the green again on Wednesday.

The global forecast for the Asian markets is upbeat on growing optimism over the outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The JCI finished slightly lower on Tuesday following mixed performances from the financial shares and the resource stocks.

For the day, the index eased 3.36 points or 0.05 percent to finish at 6,719.01 after trading between 6,697.07 and 6,744.04.

Among the actives, Bank CIMB Niaga spiked 2.60 percent, while Bank Danamon Indonesia collected 0.35 percent, Bank Negara Indonesia slumped 1.88 percent, Bank Rakyat Indonesia soared 2.78 percent, Indosat Ooredoo Hutchison added 0.58 percent, Semen Indonesia sank 0.83 percent, Indofood Suskes and Astra Agro Lestari both retreated 1.34 percent, United Tractors plunged 2.34 percent, Astra International fell 0.37 percent, Aneka Tambang improved 0.75 percent, Vale Indonesia advanced 0.78 percent, Timah skidded 1.03 percent, Bumi Resources tumbled 1.75 percent and Bank Mandiri, Bank Central Asia, Indocement and Energi Mega Persada were unchanged.

The lead from Wall Street is solid as the major averages opened higher on Tuesday and remained firmly in the green throughout the session.

The Dow jumped 145.79 points or 0.43 percent to finish at 34,212.12. while the NASDAQ rallied 111.40 points or 0.83 percent to end at 13,573.32 and the S&P 500 gained 30.08 points or 0.69 percent to close at 4,369.01.

The continued strength on Wall Street came following the release of the Labor Department's highly anticipated report on consumer price inflation in the month of May, which showed prices edged slightly higher.

The data added to optimism about the Federal Reserve pausing its recent interest rate increases when the central bank announces its monetary policy decision later today.

Crude oil prices rose sharply on Tuesday after the People's Bank of China announced a surprise rate cut, and the dollar weakened after data showing a slowdown in U.S. inflation raised expectations the Fed will pause rate increases. West Texas Intermediate Crude oil futures for July ended higher by $2.30 or 3.4 percent at $69.42 a barrel.