Market Recap
JCI closed lower yesterday amid the rupiah depreciation. Investors concerned about the tension arising from trade war and the financial crisis swept a number of countries. Top Losers: Basic Industry (-1.91%), Misc. Industry (-1.79%), Mining (-1.70%).
Global market movement was driven by the escalating-ever trade war between the U.S. and China as well as the financial crisis in Argentina. European market closed mixed relating to the merger and acquisition action. On the other hand, the U.S. market was off last night as the U.S. commemorate Labor Day.
Today’s Outlook: Global Manufacture Lags
We estimate JCI to move at lagging pace with the support range of 5905-5919 and resistance range of 5983-5997 today. The negative sentiment comes from the global volatilities. The trade war impacted on the low PMI in China, German, and UK. The trade war tension, particularly between the U.S. and China weakened the global market. As the result, rupiah is depreciated further and the benchmark rate of September likely hikes.
On the other side, August’s 2018 inflation settles at -0.05% m-m higher than August’s 2017 inflation of -0.07% m-m. The backdrop signals the pressure arising from inflation due to the further depreciation of rupiah.
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