JCI nudged up yesterday amid the rupiah appreciation. A decline in the mining sector constrained JCI’s rally. Top Gainers: Basic Industry (+1.64%), Property (+0.80%), Finance (+0.69%).
Global markets were mostly in the rally state amid the rising global crude prices. The rebound in tech. sector fueled the U.S. markets. Meanwhile, European markets were at bullish mood as Brexit’s process run smoothly. The global investors await the speech to be delivered by Jerome Powell and talks between China and the U.S.
Today’s Outlook: Rupiah Buoys Further
We estimate JCI to rally with the support range of 5991-5996 and the resistance range of 6072-6087. The positive sentiment comes from the rupiah appreciated further. Now, the rupiah strengthens at 14,500 per the U.S. dollar. The appreciation causes yields of the government’s bonds with 10-year tenor to decline lower than 7.9%. The further slowdown in global crude prices ease fears of widening external deficits.
From the global outlook, the risks may emerge ahead of talks between President Trump and Xi Jinping. On the other side, investors await the Fed’s chair Jerome Powell on Wednesday, 11/27/18 because they concern about the Fed’s stance of monetary tightening in 2019 amid the possible modest growth of the U.S. economic engine.
Download full report HERE.