Market Recap
JCI closed higher on Friday, 01/04/19. It was driven by the sentiment positive from China, the robust rupiah exchange rate, and the rally in the banking sector. Top Gainers: Mining (+3.60%), Finance (+1.07%), Consumer (+0.95%).

The global markets ended its first week of 2019 by posting the significant rally. The trade talks between the U.S. and China on January 7th-8th drive the rally. The high figures of China’s services sector are the potent drive for the rally in Asia markets. On the other hand, the U.S. markets closed higher than 3% due to the Fed’s comment and the U.S. positive job data.

Today’s Outlook: Monetary Policy Easing in China
Today, we estimate JCI to rally with the support range of 6180-6200 and the resistance range of 6330-6350. Investors are likely to keep their wary eyes on Consumers’ Confidence Index (IKK) to be released today. The prior data mentioned the hike from 119.2 in October 2018 to 122.7 in November 2018.

Most of the stock markets in Asia are likely to start trading session on the rally territory, backed by the Fed’s more cautious comments and China’s more easing monetary policies. The Fed stated that it will set a way more flexible monetary policies adapted to the financial market backdrop. Of note, PBOC lowered the needed financial reserves by 1% to 13.5% for the large cap. banks and 11.5 for the less large cap. banks.

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