Market Recap
Yesterday, JCI notched slightly higher as the banking sector posted gains. The slight increase in JCI was attributable to taking profits by local investors and the further net foreign buy. Top Gainers: Agriculture (+1.80%), Property (+0.77%), Finance (+0.73%).

The global markets closed higher yesterday amid the trade talks between the U.S. and China and the hike in prices of global crude. The talks prolonged into 3 days and resulted in a positive outcome. Meanwhile, European markets were in positive territory, underpinned by the automotive and technology sectors. Indeed, the U.S. markets rallied amid the release of the Fed’s minutes and the minutes of the meeting held between Trump and Democratic’s officers.

Today’s Outlook: US Dollar Index Is Depreciated by 0.71%
Today we estimate JCI to rally with the support range of 6180-6220 and resistance range of 6315-6350. The positive sentiments are the depreciation of USD dollar index from 95.9 to 95.2. The depreciation is expected to strengthen the rupiah’s exchange rate for USD. Another to the USD depreciation, Chinese authorities’ statement of mutually beneficial trade talks for China and the U.S. constitutes a positive sentiment.

Meanwhile, the negative sentiment derives from the rally of 5.18% to USD52.36/bbl in crude’s prices. The higher prices were attributable to the higher demand of 11.5% to 3,3 million barrel/ day by U.S. Midwest. It was the highest level since 1990; in fact, the total crude imports by the U.S. increased to 7.84 barrel/day.

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