Market Recap
JCI closed lower on Friday amid rupiah depreciation. Investors remained to eye on the threat of the global trade war. Top Losers: Basic Industry (-0.87%), Manufacture (-0.81%), Consumer (-0.81%).

Asia markets closed mixed on Friday after the announcement of new import tariff and the failure of trade negotiation between the U.S. and China. Nonetheless, the global markets rallied on Friday, 08/24/18 after the Fed’s speech noting the U.S. robust economy.

Today’s Outlook: Warning from Moody’s
We estimate JCI to move at modest pace with the support range of 5911-5925 and resistance range of 5991-5993. The negative sentiment derives from Moody’s warning of further rupiah depreciation likely breeding negative impacts on Indonesia’s fiscal and looming Indonesia’s debt management. Such backdrop inevitably escalates investors’ jitters particularly after the Financial Minister stated that in 2019 Indonesia has the large amount of matured debt to be settled.

From the global outlook, Jerome Powell’s statement hinders no certain clues whether 4x interest rates will occur in 2018. He only stated that the Fed’s rate hike will continue gradually as the U.S. economy is robust.

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