Morning Chatter

KBVS MORNING CHATTER
Monday, 8 September 2025

Headline News :
•    MDKA - Subsidiary to launch IPO
•    MEDC - New share buyback program
•    BALI – Pefindo upgrades BALI rating to idA
•    MORA – Books IDR171 bn profit in 1H25
•    DSSA – To repay IDR398.4 bn bond and sukuk
•    GGRM – To hold public expose
•    LIFE – Bancassurance premiums grew 33% yoy in 1H25

Market Commentary :
Global markets closed lower as a softer U.S. labor market report triggered a dual reaction from investors. The weak jobs data fueled hopes for a potential Federal Reserve rate cut, but also heightened fears of an economic slowdown. This uncertainty led to a broad decline in stocks. In the U.S., major indices including the S&P 500, Dow Jones, and Nasdaq all fell. The disappointing payroll numbers were seen as both a possible catalyst for a more accommodative monetary policy and a sign of underlying economic fragility.
The negative sentiment quickly spread to Europe, where major stock exchanges like the Euro Stoxx 50 and DAX also saw losses. Investors are now focused on upcoming inflation data and the Fed's next policy meeting to determine if the labor market weakness is a temporary issue or the start of a more significant downturn.
Crude oil prices posted a weekly loss, driven by expectations of a higher supply. Forecasts for increased production, particularly from OPEC+ nations, created a bearish sentiment, suggesting a potential supply glut that could outpace demand growth. Gold surged, nearing a new record of $3,600/oz, as weak U.S. jobs data fueled market bets on a Federal Reserve interest rate cut. The U.S. dollar fell against major currencies following a weaker-than-forecasted jobs report. The data, which showed a meager increase in nonfarm payrolls, solidified expectations for an imminent rate cut and diminished the dollar's strength.
Asian-Pacific equities gained momentum after the U.S. and Japan formalized a trade agreement. The deal, which cuts tariffs on Japanese auto imports, sparked a rally in Japanese markets and eased broader trade tensions. The Jakarta Composite Index closed -18.5pts (-0.23%) lower to 7,867.4. Upcoming releases will provide a more comprehensive picture of the economic landscape. Of particular interest are: foreign exchange reserves, consumer confidence, retail sales and automotive (2W and 4W) sales.

Regards,
KBVS Research Team

 

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