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Indonesia Stock Market May Snap Losing Streak

The Indonesia stock market has finished lower in three straight sessions, sliding almost 115 points or 2 percent along the way. The Jakarta Composite Index now rests just above the 6,180-point plateau although it may stop the bleeding on Tuesday.

The global forecast for the Asian markets is upbeat on growing optimism that a trade deal between the United States and China will soon be reached. The European and U.S. markets were up and the Asian bourses are tipped to follow suit.

The JCI finished modestly lower on Monday as the financial shares and resource stocks were mostly in the red.

For the day, the index sank 26.85 points or 0.43 percent to finish at the daily low of 6,180.34 after peaking at 6,242.08.

Among the actives, Bank Danamon Indonesia surged 4.13 percent, while Bank Mandiri skidded 1.43 percent, Bank Central Asia sank 0.79 percent, Bank Negara Indonesia shed 0.65 percent, Bank Rakyat Indonesia lost 0.48 percent, Indosat fell 0.31 percent, Indocement tumbled 3.90 percent, Semen Indonesia dropped 0.78 percent, Indofood Suskes added 0.65 percent, Bumi Resources dropped 1.20 percent, Aneka Tambang retreated 1.75 percent, Vale Indonesia eased 0.28 percent and Timah accelerated 1.84 percent.

The lead from Wall Street is positive as stocks opened higher Monday and stayed in the green, extending recent gains and hitting record closing highs.

The Dow added 114.75 points or 0.42 percent to 27,462.11, while the NASDAQ rose 46.80 points or 0.56 percent to 8,433.20 and the S&P 500 gained 11.36 points or 0.37 percent to 3,078.27.

The strength on Wall Street came as traders remain hopeful about a U.S.-China trade agreement, with Commerce Secretary Wilbur Ross expressing optimism phase one of a trade deal could be signed this month.

News on the merger-and-acquisition front also generated some positive sentiment, with shares of Wright Medical Group (WMGI) soaring after the medical device maker agreed to be acquired by larger rival Stryker (SYK) for $30.75 per share in cash.

Crude for December delivery moved higher on Monday, adding to recent gains on renewed optimism about the outlook for global demand. West Texas Intermediate climbed $0.45 or 0.80 percent to $56.68 per barrel.

Closer to home, Indonesia will provide Q3 numbers for gross domestic product later today; in the three months prior, GDP was up 4.2 percent on quarter and 5.05 percent on year.

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