Market Recap
JCI closed lower yesterday amid the release of November’s trade deficit of USD2.05 billion. Massive sell-off also worsened JCI at the end of trading session. Top Losers: Basic Industry (-2.20%), Consumer (-1.75%), Misc. Industry (-1.54%).

The global markets closed lower yesterday along with concerns about the possible slowdown in the global economy of 2019 and ahead of the Fed’s meeting. Most Asian markets rallied ahead of the commemoration of China’s 40 -year economic reformation on Tuesday, 12/18. The U.S. markets lowered more than 2%, suppressed by the jitters of the increase in the Fed’s meeting.

Today’s Outlook: Ahead of the Fed’s Meeting
Today we estimate JCI to move at modest pace with the support range of 6031-6037 and the resistance range of 6118-6121. The global markets re-posted a steep decline ahead of the FOMC meeting. The Fed is estimated to hold a meeting, discussing the hike in its benchmark rate on Wednesday, 12/19. On the other side, the expectancy of inflation and the possible slowdown in economic growth are likely to spark investors concerns about the Fed’s higher interest rate possible to fuel volatility in markets.

From the domestic outlook, the release of Indonesia’s trade balance in November fueled jitters. November’s deficit widened to USD2.05 billion from October’s deficit of USD1.82 billion. The widening deficit causes concerns about the possible higher trade deficit in 2019.

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