Market Recap
JCI closed lower on Monday, 09/10/18, amid the rupiah depreciation. The index movement was suppressed by the banking sector. Top Losers: Finance (-0.66%), Infrastructure (-0.52%), Basic Industry (-0.48%).
The global markets closed mixed yesterday. Investors still kept their wary eyes on the updated trade war between the U.S. and China. Indeed, they also digested the meeting plan between President Donald Trump and Kim Jong-un. On the other side, the U.S. market rallied after the tech. sector was rebound.
Today’s Outlook: China Seeks Permission from WTO
We estimate JCI to be sluggish with the support range of 5776-5786 and resistance range of 5851-5869. The negative sentiment comes from the heightened trade war between the U.S. and China after the U.S. plan of imposing another tariffs of USD267 billion on China’s goods. Such policy caused China to seek permission from World Trade Organization to impose sanctions to the U.S.
From domestic outlook, the July’s retail sales were 2.9% y-y slightly higher than the June’s retail sales of 2.3% and a steep lower than BI’s estimated retail sales of 3.4%.
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