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Indonesia Stock Market May Find Support At 6,200 Points

The Indonesia stock market has moved lower in back-to-back trading days, sliding more than 70 points or 1.2 percent along the way. The Jakarta Composite Index now rests just above the 6,210-point plateau although it may find traction on Wednesday.

The global forecast for the Asian markets is broadly positive on an improved outlook for trade between the United States and China, and the resulting surge in crude oil prices. The European and U.S. markets were firmly higher and the Asian bourses are expected to open in similar fashion.

The JCI finished modestly lower on Tuesday as losses from the financial shares and cement companies were mitigated by support from the financial stocks.

For the day, the index shed 39.63 points or 0.63 percent to finish at 6,210.96 after trading between 6,198.07 and 6,251.31.

Among the actives, Bank Mandiri shed 0.68 percent, while Bank Central Asia fell 0.41 percent, Bank Negara Indonesia slid 0.32 percent, Bank Rakyat Indonesia lost 0.47 percent, Astra International sank 1.11 percent, Indosat spiked 2.22 percent, Indocement plunged 2.85 percent, Semen Indonesia plummeted 3.12 percent, Indofood Suskes tumbled 1.66 percent, United Tractors contracted 2.19 percent, Bumi Resources dropped 2.91 percent, Aneka Tambang advanced 2.90 percent, Vale Indonesia soared 3.09 percent, Timah jumped 1.54 percent and Bank Danamon Indonesia was unchanged.

The lead from Wall Street is firmly upbeat as stocks moved higher early Tuesday and only got stronger as the day progressed.

The Dow climbed 372.54 points or 1.44 percent to 26,279.91, while the NASDAQ surged 152.95 points or 1.95 percent to 8,016.36 and the S&P 500 jumped 42.57 points or 1.48 percent to 2,926.32.

The rally on Wall Street came after U.S. Trade Representative Robert Lighthizer offered a temporary reprieve in the U.S.-China trade war by announcing a delay in imposing new tariffs on certain Chinese products. Lighthizer said the 10 percent tariff set to take effect on September 1 will be delayed until December 15 for certain products.

The announcement comes less than two weeks after President Donald Trump announced plans to impose a 10 percent tariff on the remaining $300 billion worth of Chinese imports, sparking a sell-off on Wall Street.

In U.S. economic news, the Labor Department said consumer prices rose in line with estimates in July, although the report also showed another bigger than expected increase in core consumer prices.

Crude oil prices shook off early weakness and posted a modest recovery on Tuesday following news of the delay in tariffs. West Texas Intermediate climbed $2.42 or 4.42 percent to $57.20 after the trade announcement after moving as low as $54.78 earlier in the day.

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