Indonesia Stock Market Tipped To Open In The Red

The Indonesia stock market on Monday snapped the three-day winning streak in which it had gained more than 50 points or 0.8 percent along the way. The Jakarta Composite Index now sits just above the 6,935-point plateau and it may take further damage on Tuesday.

The global forecast for the Asian markets is mixed and flat ahead of the Federal Reserve’s monetary policy announcement later this week. The European markets were down and the U.S. bourses were barely higher and the Asian markets figure to split the difference.

The JCI finished modestly lower on Monday following losses from the financial shares and resource stocks.

For the day, the index lost 46.71points or 0.67 percent to finish at 6,936.08.

Among the actives, Bank Mandiri shed 0.42 percent, while Bank Danamon Indonesia lost 0.69 percent, Aneka Tambang tanked 2.89 percent and Bank Central Asia and Astra International were unchanged.

The lead from Wall Street offers little guidance as the major averages opened lower on Monday, bounced higher to spend most of the day in the green but faded late to end barely above the unchanged line.

The Dow added 6.06 points or 0.02 percent to finish at 34,624.30, while the NASDAQ rose 1.90 points or 0.01 percent to close at 13,710.24 and the S&P 500 perked 3.21 points or 0.07 percent to end at 4,453.53.

The choppy trading on Wall Street came as traders seemed reluctant to make significant moves ahead of the Federal Reserve’s monetary policy announcement on Wednesday.

The Fed is widely expected to leave interest rates unchanged, but traders will pay close attention to the accompanying statement and the central bank’s projections for clues about the outlook for rates.

On the U.S. economic front, the National Association of Home Builders released a report showing homebuilder confidence in the U.S. has unexpectedly deteriorated in September.

Oil futures settled higher on Monday, rising for a third straight session on global supply issues and a weaker dollar. West Texas Intermediate Crude oil futures for October rose $0.71 or 0.8 percent at $91.48 a barrel, the highest settlement this year.