Market Recap
JCI rallied as the U.S. imposed the new tariffs on China’s goods. Top Gainers: Finance (+2.10%), Basic Industry (+1.49%), Property (+1.33%).
The global market was suppressed by the escalating trade war tension sparked by the U.S. new tariffs of USD16 billion on China’s goods. Besides, the U.S. stocks were also loomed by the legal action against President Trump.
Today’s Outlook: Possible Upgrade by S&P
We estimate that JCI likely rallies with the support range of 5942-5952 and resistance range of 6035-6040. The positive sentiment derives from the rating agency Standard & Poor’s (S&P) stating that Indonesia deserves an upgraded rating if it succeeded in ensuring a stronger fiscal backdrop and external metric measurement and maintaining the economic growth. Additionally, S&P also affirmed that the 2019’s state budget draft disclosed by President Joko Widodo is realistic.
On the other hand, investors likely eye on the updated issue relating to the trade war between the U.S. and China. The U.S. stance of imposing new tariffs on China’s goods is potential for igniting concerns about deadlock of the two-country trade negotiation.
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