JCI rallied yesterday amid the trend of strengthening global currencies against the U.S. dollar. Top Gainers: Infrastructure (+3.92%), Miscellaneous Industries (+2.26%), Property (+1.35%).
The global markets notched higher yesterday after the speech delivered by the Fed’s chairperson. Meanwhile, the new trade agreement entered by the U.S. and Mexico underpinned the movement in the U.S. and European markets. On the other side, Asia markets were heavily impacted by the People’s Bank of China’ stance of managing yuan.
Today’s Outlook: Trade Negotiation between the U.S. and Mexico
We estimate JCI to rally with the support range of 5994-6003 and resistance range of 6083-6093. The positive sentiment comes from the rally in global markets attributable to the trade negotiation between the U.S. and Mexico. The new negotiation is a substitute for the NAFTA agreement considered to disadvantage the U.S. by President Trump. It slightly subdued the global concerns about the possible trade war escalation between the U.S. and other countries.
The trade negotiation between the U.S. and Mexico caused the global market stocks and crude’s prices to rally. Besides, it also caused the U.S. dollar to weaken within 2-consecutive days. The weakening U.S. dollar likely breeds positive sentiments to rupiah movement and Indonesia-based market stocks.
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