Market Recap
JCI closed flat yesterday, backed by the financial sector. October’s inflation of 0.28% m-m constrained JCI’s movement. Top Gainers: Misc. Industry (+1.34%), Finance (+1.26%), Mining (+0.66%).
European and Asian bourses were in mixed state yesterday as investors digested 3Q18’s earnings higher than estimate. Pounds’ rally was on the back of BOE’s stance of leaving interest rates unchanged and a smooth Brexit. On the other side, smooth talks between Trump and Xi Jinping leveraged the U.S. bourses.
Today’s Outlook: Trump- Xi Jinping Talks
We estimate JCI to rally with the support range of 5801-5805 and resistance range of 5890-5905. The positive sentiment comes from conducive global markets due to Trump’s statement. Trump articulated that he had a moving-nicely talks with Xi Jinping. This fact give positive sentiments that trade negotiations between the two economies are possible to hit deals.
On the other side, another positive sentiment comes from further decline in global crude prices. WTI’s crude benchmark tumbled by 2.5% to USD63.7 per barrel. The backdrop eased fears of yawning gap of Indonesia’s external deficit.
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