US Retail Sales August grew +0.3% MoM, as energy costs fell for the period. Wall Street briefly rose before closing lower, with the S&P500 and Nasdaq depreciating more than 1%. Monthly retail sales improved on the back of increased purchases of motor vehicles and consumption, in line with lower public gasoline and gas costs. Consumer spending was also supported by the labor market, with jobless claims for the week ending September 10 dropping 5K claims to 213K WoW, a three-month low. On the other hand, July MoM retail sales which fell -0.4% indicated a high rate of inflation, making people focus on essential goods on their household expenses.

JCI has the opportunity to move sideways, after touching the ATH level yesterday. NHKSI Research projects that the JCI will experience a consolidation phase, with Support levels: 7,260-7,250 / 7,210-7,200 / 7,050-7,000 and Resistance: 7,345-7,355 / 7,500 / 7,600. Meanwhile, Indonesia’s Trade Balance in August which recorded a surplus of +USD5.7B (Vs. Surv. +USD4B; Jul. +USD4.2B), became a positive catalyst for the JCI amidst the projection of an increase in BI 7DRRR in September of +25Bps to 4%. The trading performance in August was supported by export growth of 30.2% YoY or exceeding market expectations of 19.9% YoY growth. On the other hand, Imports only rose 32.8% YoY or lower than the previous month which grew 41.2% YoY. Yesterday, JCI touched the All Time High (ATH) 7,377 before finally¬† closing at 7,305.

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