Along with the rupiah appreciation and the end of net foreign sell, JCI rallied yesterday. The rally was backed by the financial sector. Top Gainers: Infrastructure (+2.02%), Misc. Industry (+1.94%), Basic Industry (+1.48%).
The global markets still affected by the positive progress of the trade deals between the U.S. and China. Asia markets closed higher, led by China’s markets. European markets closed lower, relating to the end of the European Central Bank’s stimulus program. The U.S. markets closed mixed amid investor’s expectancy of concrete trade resolution between the two countries.
Today’s Outlook: The Rupiah Appreciation
We estimate that today JCI will rally with the support range of 6141-6150 and the resistance range of 6209-6215. The better trade deals between the U.S. and China has strengthened the rupiah. After weakening at 14,600 per USD, it strengthens to 14,500 per USD. We estimate the backdrop is a sign of investors’ higher confidence and a mark of JCI’s uptrend until the end of 2018.
From the global outlook, the pressure comes from the European Central Bank’s stance of Quantitative Easing. However, we oversee that the stance has the least significant impacts on markets. Markets have estimated the ECB’s QE stance.
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