Negative Sentiment Weighs on Stocks and Rupiah

RRI.CO.ID, Jakarta - Following the recent cabinet reshuffle, financial markets are expected to focus again on economic issues. With few major economic data releases today, markets are likely to be influenced more by geopolitical developments in Asia.

Global crude oil prices remain around US$106 per barrel. Prices have shown little significant change over the past two trading days, while growing uncertainty and potential risks continue to press financial markets.

The Jakarta Composite Index (IHSG) opened higher in early trading. However, the gain did not last long, as the index reversed course and fell below the psychological level of 6,500.

The decline in the IHSG came as regional market sentiment also weakened. Most Asian stock markets were trading lower on Tuesday morning.

Pressure on the IHSG increased as investors waited for clearer signals on the government's fiscal policy, particularly following the appointment of the new Finance Minister. At the same time, the Indonesian rupiah weakened to around 17,675 rupiah per US dollar.

The yield on the 10-year US Treasury rose again to around 5%, while the US Dollar Index climbed to 99.6. These movements supported the US dollar and added pressure to Indonesia's financial markets, which were also affected by geopolitical tensions.

A stronger US dollar has also put pressure on global gold prices. Gold was trading at around US$4,308 per troy ounce, equivalent to approximately 2.47 million rupiah per gram.

Writer: Gunawan Benjamin (Economist, UISU)