Market Recap
JCI finished lower yesterday, following the global markets. Investors also concerned about the impacts of global trade war to the global economic growth. Top Losers: Misc. Industry (-2.92%), Finance (-2.68%), Mining (-2.46%).
The global markets finished lower yesterday. Investors’ concerned about the impacts of unresolved trade war between the U.S. and China on the global economic growth and the trend of the Fed’s rate hikes triggered them to sell high-risk instrument such as stocks and load up on safe havens.
Today’s Outlook: The U.S. Inflation
Today, we estimate JCI to rally with the support range of 5662-5669 and the resistance range of 5746-5758. The positive sentiment comes from the U.S. inflation of 0.1% m-m in September. The figures were lower than the estimated figures of 0.2% and August’s inflation of 0.2%. Responding to the inflation data, the U.S. government bond yields declined sharply. On the other hand, although the U.S. stocks decline further, this morning Asia’s stocks move mixed.
From the domestic outlook, the rupiah begins to be appreciated as it moves below 15,200 per U.S. dollar. The trend of corrections to U.S. dollar index is estimated to be capable of maintaining the rupiah’s rally at the range of 15,100-15,200 today.
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