Indonesian Market Recap
JCI tumbled yesterday after the release of April’s deficit trade balance. Top Losers : Finance (-2.96%), Consumer (-2.52%), Infrastructure (-2.51%).
Today’s Outlook: : Pressure of the U.S. Treasury Yield
Today we estimate JCI to be bearish with the support range of 5768-5775 and resistance range of 5853-5866. The negative sentiment comes from the further hike in the U.S. Treasury yield reaching 3.09%, all time high since 2011. The backdrop was triggered by the release of robust retail sales data. The hike in yield caused rally in USD. From the domestic outlook, the release of April’s deficit trade balance heightened current market jitter of rupiah depreciation.
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