Market Recap
JCI was rebounding, backed by the banking sector and massive foreign net buy. Top Gainers: Basic Industry (+1.66%), Infrastructure (+1.63%), Finance (+0.75%).
Global markets were sluggish as investors doubted the possible trade deal between the U.S. and China. The yield curve inversion and jitters of the 2019 economic slowdown sent the U.S. markets dip by +3%. European market also suppressed by the robust Euro and Pounds’ exchange rate.
Today’s Outlook: The U.S. Recession Signals
We estimate JCI to be bearish with the support range of 6040-6056 and the resistance range of 6178-6192. The negative sentiment comes from the U.S. Treasury bonds. The yield of U.S. Treasury with 3-year tenor is higher than the yield of U.S. Treasury with 5-year tenor. The backdrop is known as an inversion; it signals recession to sweep the U.S. On the other side, investors also worry about the deals between the U.S. and China. The White House issued two different statements relating to the schedule of trade truce.
From the domestic outlook, after strengthening to 14,200, the rupiah starts to weaken amid global volatility.
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