Market Recap
JCI decelerated as the infrastructure sector was underperformance. Net foreign sell and the rupiah depreciation even worsen JCI. Top Losers: Infrastructure (-2.33%), Basic Industry (-1.62%), Property (-1.00%).
Most global markets rallied amid investors’ expectancy of the Fed’s statement and the G20 meeting. Yet, European markets ended flat due to fears of Brexit’s progress. Meanwhile, Asia markets rallied, spurred by the possible talks between the U.S. and China. Unlike European markets, the U.S. markets finished higher than 2% thanks to the Fed’s dovish stance.
Today’s Outlook: Powell’s Speech
We estimate JCI to rally with the support range of 5968-5975 and the resistance range of 6052-6058. The positive sentiment comes from Powell’s last night speech as he stated that the Fed’s rates to near its normal level. Powell’s dovish stance was in a stark contrast to his last 2-month hawkish stance. His dovish stanch relieved markets from fears of the Fed’s fast monetary tightening.
On the other side, the tension arising from the U.S. and China trade war eased ahead of Trump and Xi Jinping meeting in late November. Trump finally expressed his fears of possible economic deterioration sparked by prolonged trade wars. That implies compromised trade policies between the U.S. and China to be a possibility.
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