International News 26 March 2025
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Oil closes mixed, Russia-Ukraine ceasefire offsets supply concerns
The closing prices for oil were mixed, with a truce between Russia and Ukraine in the maritime and energy sectors offsetting concerns about tighter global supply due to potential US tariffs on countries buying Venezuelan production. Brent crude oil prices for the May 2025 delivery contract closed slightly higher by 0.03% at $73.02 per barrel, while West Texas Intermediate (WTI) crude oil prices for the same delivery contract closed lower by 0.16% at $69 per barrel. The ongoing ceasefire between Russia and Ukraine, facilitated by the US, has led to speculation about a potential reduction in sanctions on Russian oil. However, the threat of US tariffs on countries purchasing Venezuelan oil and gas has led to concerns about supply. Following this announcement, both benchmarks experienced a price increase of over 1% on Monday.
JCI still overshadowed by external pressure, watch these stocks this week
The Composite Stock Price Index (JCI) closed higher on Tuesday, gaining 74.40 points or 1.21% to reach 6,235.61. The number of shares that rose exceeded those that fell, with a total trading volume of 16.64 billion shares valued at Rp 14.22 trillion. Although foreign funds entered the stock exchange by Rp 420.19 billion, the amount that has left since the beginning of the year is significantly higher at Rp 30.83 trillion. The market was influenced by external sentiment, which was boosted by the release of positive United States (US) purchase manager index data showing strengthening in the services sector, as well as softer import tariffs. However, this positive sentiment may be short-term, as the JCI still faces pressure from domestic political risks and a more attractive Chinese market. The return of foreign funds is likely to be contingent on the government implementing transparent and efficient programmes to support economic growth. Investors continue to exercise caution in light of the potential for future political risks.
Asian Exchanges Compactly Strengthen this Morning (26/3), in Line with Wall Street Rally
Asian markets opened higher today, with the Nikkei 225, Hang Seng, Taiex, Kospi, and ASX 200 indices all seeing gains. This followed the positive performance of Wall Street, as investors anticipated more moderate tariffs from US President Donald Trump. Reports suggest that the planned tariffs, set for 2 April, will be limited in scope. Trump also indicated some flexibility in his reciprocal tariff plans, although US consumer confidence is being affected. Morning Consult has highlighted that US consumers are becoming cautious of inflation, financial fragility, and increased risks in the labour market, which may lead to reduced spending across all income brackets. In the previous session, the S&P 500 index experienced gains.