ARTICLE

US indices closed higher on Thursday (13/02); DJIA (+0.77%), S&P 500 (+1.04%) and IXIC (+1.50%), as market' assessed US economic data and President Donald Trump's tariff plan. Trump said he has directed his economics team with devising a plan to impose reciprocal tariffs on every country that imposes duties on US imports, which could trigger a global trade war. On US economic data, US PPI and core PPI grew 3.5% yoy and 3.6% yoy, respectively in Jan'25. While, the US Labor Dept reported that last week US' initial jobless claims was lower than expected at 213k. Thus, USD index and US 10-Y bond yield closed lower to 107.09 and 4.535%, respectively. In Europe, STOXX600 ended 1.09% higher yesterday, driven by gains in stocks (Swiss' Nestle and German' Siemens) due to good 4Q24 results, along with market' hopes for talks to end the war between Russia and Ukraine. At the same time, Germany's CPI was at 2.3% yoy/-0.2% mom in Jan'24 or in-line with market' expectation. While, UK' GDP grew 1.5% yoy in Dec'24 and 1.4% yoy in 4Q24, which were above expectations. Moreover, the ECB could increase its pace of interest rate cuts due to US tariffs, and a weak EUR could bode well for export-oriented companies. On commodity, both Brent Oil and US WTI fell slightly to USD75.02 /barrel and USD71.29 /barrel as the downward pressure from hopes for peace talks between Russia and Ukraine, were offset by optimism for a pause in new US tariffs. Yesterday, indices in Asia closed mixed, and JCI closed 0.48% lower, but with around IDR817.58 bn net foreign outflow. Today, JCI could continue to end lower due to a strong US market and rebound in USD, despite with a lower oil prices on peace talks (Russia-Ukraine and Gaza).