Stocks fell Monday, as Italian bond yields gained and investors questioned whether the country can implement austerity measures.
The Dow Jones Industrial Average lost 74.70 points, or 0.6%, to 12,078.98 points. All but three of the Dow's 30 components dropped. The Standard & Poor's 500-stock index fell 12.06 points, or 1%, to 1,251.79, as financial stocks fell the hardest. The Nasdaq Composite shed 21.53 points, or 0.8%, to 2,657.22. Trading volume was light.
Investors took their cues from European markets, which finished broadly lower. The Stoxx Europe 600 dropped 1%. The yield on Italy's 10-year debt inched closer to 7%, a threshold of close interest for investors. It pierced that mark last week, which prompted broad worries about the country's ability to borrow in the public markets.
"Everyone's watching that inverse relationship. As bond yields in Italy rise toward that 7% level, it's translating to investors selling equities here," said Ryan Larson, head of U.S. equity trading at RBC Global Asset Management, as quoted by WSJ.com. How about Indonesia stock market today? Here are recommendations as quoted by Bisnis Indonesia today.
Jakarta Composite Index (JCI) is estimated to move in bullish trend in the short term at the level of 3,775. In the short term, the index may reach 3,842. Several stocks to watch: INDF, INCO, and INTP.
Minna Padi Investama:
The JCI may rise with a resistance level of 3,875. Banking stocks may face further gain. Several stocks to watch: BMRI, BBCA, and BJBR.
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