Market Recap
Following the regional bourses, JCI closed higher yesterday. The rally was backed by the easing tension of the U.S. and China trade war. Top Gainers: Basic Industry (+1.68%), Property (+1.51%), Infrastructure (+0.89%).
China’s plan to cut tariffs imposed on automotive imported from the U.S., the positive progress of the arrest of Huawei CFO, and Trump’s possible intervention on the case of the U.S.-Huawei were factors driving the global markets to reign in positive territory. Besides, China also plans to give foreign companies easy accesses and change the “Made in Chine 2025” plan. European markets also rallied amid the backlash against May’s Brexit deal.
Today’s Outlook: The U.S and China Better Trade Deals
Today we estimate JCI to rally with the support range of 6086-6095 and the resistance range of 6141-6152. The better relationship between the U.S. and China is the major catalyst for the global markets’ movement, including JCI. China plans to give foreign companies more accesses to participate in China’s economic activities. Such policy is the substitute for the policy of “Made in China 2025”, which is protectionism in its nature.
On the other side, China’s SOEs on Wednesday also imported a minimum of 500,000 tons of the U.S. soybean oil. It indicates the subdued trade war tension between the U.S. and China after leaders from both countries met in G20 conference.
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