US stocks closed lower on Tuesday (6/20); Dow Jones -0.72%, S&P 500 -0.47%, and Nasdaq -0.16%. The market started the week with a rather slow session as many investors believed the second-quarter rally had gone too far, which turned them bearish ahead of Fed Chair Jerome Powell’s testimony later this week. The UST 10Y yield fell -0.1bps (-2.63%) to 3.73%, while the USD index rose +0.02% to 102.54.

 

Commodity prices mostly declined on Tuesday (6/20); WTI oil -1.11% to USD 70.5/bbl, Brent -0.25% to USD 75.9/bbl, coal +1.31% to USD 134.6/ton, nickel -2.36% to USD 21.976 and CPO -0.82% to MYR 3,727. Gold slipped 0.83% to USD 1.947/toz.

 

Asian markets closed mostly lower on Tuesday: Kospi -0.18%, Nikkei +0.06%, Hang Seng -1.54%, and Shanghai -0.47%. JCI ended the session at 6,660.5 (-0.38%), with foreign investors recording a total net sell of IDR 410.8 billion; IDR 285.8 billion in the regular market and IDR 125 billion in the negotiated market. The largest foreign outflow in the regular market was recorded by BBCA (IDR 103.3 billion), FILM (IDR 44.9 billion), and AMRT (IDR 29.8 billion). The largest foreign inflow in the regular market was recorded by BBRI (IDR 36.9 billion), AKRA (IDR 32.9 billion), and HRTA (IDR 13.6 billion). The top leading movers were TLKM, BBCA, and BBRI, while the top lagging movers were ASII, MDKA, and INDF.

 

Nikkei fell -0.36% this morning, and KOSPI slipped -0.18%. We expect the JCI to decline further today, given negative sentiments from global and regional markets