JCI closed at a steep decline yesterday. Investors still focused on the domino effects of financial crisis sweeping a number of emerging countries. Top Losers: Consumer (-4.17%), Basic Industry (-3.99%), Misc. Industries (-3.90%).
The global markets notched lower yesterday underscored by the escalating trade war sparked by the U.S. against Canada and China. Meanwhile, Asia markets are effected by investors’ jitters over the financial crisis in the emerging countries. The U.S. market closed mixed yesterday after a massive sell-off.
Today’s Outlook: : Consumer Confidence Index
We estimate JCI to rally with the support range of 5634-5641 and resistance range of 5739-5746. After JCI tumbled attributable to the rupiah depreciation since the early of September, today investors will eye on the release of consumer confidence index (CCI). The July’s CCI declined to 124.8 after it hit the highest level of 128.1 in June 2018. The stable IKK indicates that the domestic consumption is robust despite the pressure arising from the trend of rupiah depreciation.
From the global outlook, the pressure stemming from the U.S. dollar strengthening subdues gradually after German is willing to compromise and bear a more lenient requirement of European Union cooperation proposed by the U.K. The fact inevitably strengthens euro and pound sterling’s exchange rate for the U.S. dollar.
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