Muted Open Predicted For Indonesia Stock Market

(RTTNews) - The Indonesia stock market has moved higher in two of three days since the end of the two-day losing streak in which it had slumped more than 70 points or 1 percent. The Jakarta Composite Index now sits just above the 6,935-point plateau although it may spin its wheels again on Thursday.

The global forecast for the Asian markets is mixed and flat following the release of U.S. inflation data that offered little clarity for interest rates. The European markets were slightly lower and the U.S. bourses were mixed and little changed and the Asian markets figure to split the difference.

The JCI finished slightly higher on Wednesday following mixed performances from the financial shares, resource stocks and cement companies.

For the day, the index perked 1.51 points or 0.02 percent to finish at 6,935.48.

Among the actives, Bank CIMB Niaga tumbled 1.81 percent, while Bank Mandiri shed 0.43 percent, Bank Danamon Indonesia rallied 1.41 percent, Bank Negara Indonesia collected 0.54 percent, Bank Central Asia fell 0.27 percent, Bank Rakyat Indonesia added 0.47 percent, Indosat Ooredoo Hutchison improved 0.76 percent, Indocement jumped 1.62 percent, Semen Indonesia sank 0.71 percent, Indofood Suskes increased 0.73 percent, United Tractors gathered 0.37 percent, Energi Mega Persada surged 5.07 percent, Perusahaan Gas skyrocketed 6.69 percent, Astra Agro Lestari rose 0.34 percent, Aneka Tambang retreated 1.54 percent, Vale Indonesia declined 1.28 percent, Timah tanked 2.91 percent, Bumi Resources plummeted 4.41 percent and Astra International was unchanged.

The lead from Wall Street is murky as the major averages opened higher on Wednesday, quickly plummeted and then recovered to finish mixed and little changed.

The Dow sank 70.46 points or 0.20 percent to finish at 34,575.53, while the NASDAQ added 39.97 points or 0.29 percent to close at 13,813.58 and the S&P 500 rose 5.54 points or 0.12 percent to end at 4,467.44.

The choppy trading on Wall Street followed the release of the Labor Department's report on consumer price inflation in August. The report said the consumer price index climbed by 0.6 percent in August after inching up by 0.2 percent in July.

While the data reinforced expectations the Federal Reserve will leave interest rates unchanged next week, many economists feel the bigger than expected monthly increase in core prices leaves the door open for another rate hike before the end of the year.

Following the report, CME Group's FedWatch Tool indicates a 97.0 percent chance the Federal Reserve will leave interest rates unchanged next week. The outlook for November remains more mixed, however, with the FedWatch Tool indicating a 58.0 percent chance rates will remain unchanged and a 40.8 percent chance of another quarter-point rate hike.

Crude oil futures settled lower on Wednesday on worries about demand after data showed an unexpected jump in U.S. crude inventories. West Texas Intermediate Crude oil futures for October fell $0.32 or 0.4 percent at $88.52 a barrel.