JCI closed slightly lower yesterday as the basic industry was the worst performer. The decline followed Asia markets beset by the trade war sentiments. Top Losers: Basic Industry (-2.04%), Mining (-1.59%), Infrastructure (-1.51%).
Tit-for-tat tariffs launched by the U.S. against China becomes global investors’ main focus and suppresses most of European and Asia markets. Italian budget plan and Brexit are still European investors’ major focus. On the contrary, the U.S. markets closed higher as one of Trump’s advisors revealed the possible deals between the U.S. and China.
Today’s Outlook: Comments Ahead of Trump and Xi Meeting
We estimate JCI to rally with the support range of 5968-5975 and the resistance range of 6052-6058. The main sentiment driving markets is comments ahead of Trump and Xi meeting on this weekends. Trump’s advisor Larry Kudlow recently stated that the U.S. and China will make deals on trade as White House had communicated with all levels of Chinese government.
On the other hand, investors digest the Fed’s chair Jerome Powell. One of the Fed’s officers previously stated that the Fed’s rates near their neutral level. Investors figure out the Fed’s policies amid the headwinds of out of sync economy in 2019.
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