JCI lowered yesterday, following the regional stock markets. The slight decline occurred as the trade balance posted surpluses of USD230 million. Top Losers: Basic Industry (‐3.68%), Mining (‐1.69%), Property (‐1.00%).
Investors’ concerns about global issues suppressed the U.S. and Asia markets. The U.S. investors concerned about the trend of FFR rate hikes and the impacts of trade war on financial performance of tech. sector. On the other side, European stocks market closed mixed ahead of Brexit negotiation on Wednesday, 10/16/18.
Today’s Outlook: Government’s Policy Takes into Effects
Today we estimate JCI to rally with the support range of 5702‐5706 and resistance range of 5787‐5789. The positive sentiment comes from the release of September’s trade balance posting surpluses backed by lagging oil and gas (migas) imports. It indicates that B20 mandatory starts to have its impacts. Trade balance’s surpluses have positive impacts on the returning of foreign investors’ net buy despite JCI’s yesterday slight decline.
On the other hand, today global markets’ backdrop is conducive after being constrained by Saudi Arabia’s geopolitical issue. Today’s positive sentiment comes from the lagging dollar index due to the release of the U.S. retail sales, much lower than the estimate.
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