TEMPO.CO, Jakarta - The Indonesian Stock Exchange (IDX) Composite (IHSG) rises on Friday morning, July 11, 2025, as global trade tensions, particularly those from the United States (U.S.), ease.

The IHSG opens higher by 30.93 points, or 0.44 percent, to 7,036.30. Meanwhile, the group of 45 leading stocks, or the LQ45 index, rises by 4.14 points, or 0.53 percent, to 783.29.

"We expect the IHSG to continue rising today, driven by the discounted negative sentiment to trade tensions in the market, and the performance of commodities showing a positive trend," said Panin Sekuritas analyst Reydi Octa in Jakarta on Friday.

Overseas, market participants viewed positively Trump's suspension of reciprocal import tariffs to August 1, 2025, which helped alleviate market concerns.

However, market participants are still observing trade tensions following Trump's decision to set tariffs at 50 percent for Brazil and 35 percent for Canada, and to add a 50 percent import duty for copper commodities.

Trump also plans to implement sweeping tariffs of 15-20 percent for all U.S. trading partners, or to increase from the current 10 percent.

In addition, the domestic situation in the U.S. is also heating up after Trump stated that The Fed Governor Jerome Powell is bad at managing monetary policy

On the other hand, the minutes from the Federal Open Market Committee (FOMC) on June 17-18, 2025, provided hope that inflation pressures resulting from U.S. trade policies will not postpone the schedule for cutting the benchmark interest rate this year.

The Fed is optimistic about cutting its benchmark interest rate this year, although divisions have begun to emerge among Fed officials regarding when the interest rate cuts will be made.

From commodities, Brent oil prices corrected by 2.65 percent, while spot nickel prices rose by 2.18 percent, and CPO prices in Rotterdam soared by 6.64 percent driven by global export growth, with June 2025 shipments up by 4.3 percent. CPO futures contracts also experienced a weekly increase of around 2.5 percent, supported by strong demand from India.

In Thursday's trading, the European stock exchanges closed with mixed results, including the Stoxx 600 index rising by 0.54 percent, while the DAX weakened by 0.38 percent, and the FTSE 100 surged by 1.23 percent.

Market participants are still awaiting the direction of trade negotiations between the U.S. and Europe, with hopes of a favorable agreement. The FTSE 100's record high was driven by the positive performance of the mining sector.

Meanwhile, the U.S. stock exchange on Wall Street closed higher in Thursday's trading, with the S&P 500 index rising by 0.27 percent to close at 6,280.46, the technology-dominated Nasdaq index gaining 0.09 percent to reach 20,630.67, and the Dow Jones Industrial Average increasing by 192 points or 0.43 percent to 44,650.64.

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