Market Recap
Although JCI nudged up in the second trading session, it closed slightly lower yesterday. JCI’s modest pace responded to the bearish regional markets. Top Losers: Mining (-1.16%), Property (-1.13%), Finance (-0.40%).

Jitters of 2019 murky economic outlook still loom and cause most global markets to reign in negative territory. Following the U.S. markets, Asia markets finished lower amid Xi Jinping’s speech. On the other side, the U.S. markets nudged up thanks to the Democratic party’ stance rejecting the U.S. budget draft.

Today’s Outlook: Tumble in Crude Prices
We estimate JCI to rally with the support range of 6055-6062 and the resistance range of 6132-6140. The positive sentiment comes from the tumble of higher than 7% in global crude prices. The higher output by the U.S. and Russia amid the slowdown in the global demand is the logical takeaway for the slowdown in global crude prices. Since October, global crude prices declined by more than 40%.

The decline in global crude prices gives a positive sentiment for Indonesia’s economy facing external trade deficits. The sluggish global crude prices will prove a boon for Indonesia in efficiently managing imports. On the other side, the decline in global crude prices put Indonesia away from risks of higher inflation.

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