(RTTNews) - The Indonesia stock market on Monday snapped the two-day winning streak in which it had gained more than 15 points or 0.2 percent. The Jakarta Composite Index now sits just beneath the 7,120-point plateau although it's predicted to see renewed support on Tuesday.
The global forecast for the Asian markets is cautiously optimistic on hopes for an interest rate cut. The European markets were mixed and the U.S. bourses were modestly higher and the Asian markets are expected to split the difference.
The JCI finished modestly lower on Monday following losses from the financial shares and resource stocks.
For the day, the index dropped 71.46 points or 0.99 percent to finish at 7,119.52 after trading between 7,092.03 and 7,192.89.
Among the actives, Bank Mandiri collected 0.42 percent, while Bank Danamon Indonesia skidded 1.08 percent, Bank Negara Indonesia stumbled 1.42 percent, Bank Central Asia slid 0.27 percent, Bank Rakyat Indonesia slumped 0.90 percent, Indosat Ooredoo Hutchison retreated 1.58 percent, Semen Indonesia declined 1.21 percent, Indofood Suskes sank 0.79 percent, United Tractors rallied 2.47 percent, Astra International dropped 0.88 percent, Astra Agro Lestari lost 0.35 percent, Aneka Tambang fell 0.30 percent, Vale Indonesia slid 0.24 percent, Timah plunged 2.40 percent, Bumi Resources tumbled 2.20 percent and Bank CIMB Niaga, Indocement and Energi Mega Persada were unchanged.
The lead from Wall Street is mostly positive as the major averages opened higher on Monday and largely stayed that way, although the Dow struggled to stay in the green.
The Dow rose 0.86 points or 0.00 percent to finish at 37,306.02, while the NASDAQ advanced 90.89 points or 0.61 percent to close at 14,904.81 and the S&P 500 gained 21.37 points or 0.45 percent to end at 4,740.56.
The major averages have moved higher for seven consecutive weeks due in part to optimism about the outlook for interest rates, with last week's rally coming as the Federal Reserve's latest projections hinted at three rate cuts next year.
However, several Fed officials have subsequently pushed back on investor hopes that rate cuts by the central bank are imminent. Nonetheless, CME Group's FedWatch Tool still suggests there is a good chance the Fed will lower interest rates by a quarter point in March.
In economic news, the National Association of Home Builders released a report showing homebuilder sentiment in the U.S. rebounded in December after falling for four consecutive months.
Oil prices rose sharply on Monday on rising tensions in the Middle Ease due to recent attacks on ships crossing the Red Sea, which have raised supply concerns. West Texas Intermediate Crude oil futures for January ended higher by $1.04 or 1.44 percent at $72.47 a barrel.
