Market Recap
JCI closed at a rebound session, backed by the financial sector, particularly BBCA’s stocks, and the rupiah appreciation. Top Gainers: Finance (+1.49%), Misc. Industry (+1.33%), Trade (+1.08%).

The U.S. and China re-continued talks are possible positive sentiments easing the global trade tensions. Loses in global crude prices dragged the U.S. energy sector down and caused the U.S. markets to reign at mixed session. Meanwhile, Asia markets finished mixed, following the U.S. markets movement prior day. Additionally, the tech. sector was the catalyst for European markets reining in a bullish mood.

Today’s Outlook: Tumbling Global Crude Prices
We estimate JCI to rally with the support range of 5791-5796 and the resistance range of 5891-5906. The positive sentiment comes for the steep tumble in WTI crude prices, falling much lower than 7% to USD 55.69 per barrel, all-time low within the one recent year. The tumble was beset by Trump urging OPEC not to curb its production. The glut will fuel oversupply.

The steep drop in crude prices is likely to have positive impacts on Indonesia’s future trade balance. After being hit by soaring imports in recent months, Indonesia’s trade balance is estimate to improve.

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