Market Recap
JCI closed on high note yesterday amid the subdued trade war tension attributable to trade talks with China’s authorities proposed by the U.S. Top Gainers: Infrastructure (+2.05%), Finance (+1.77%), Basic Industry (+1.58%).

The global markets were positive amid the subdued trade war tension. The U.S. markets closed on a high note after Apple’s stocks hiked higher than 2%. European markets ended mixed as ECB and BoE decided not to raise interest rate.

Today’s Outlook: The U.S. Inflation
We estimate JCI to rally further today with the support range of 5815-5820 and resistance range of 5892-5906. The positive sentiment comes from the U.S. inflation of August to be released last night. The U.S. inflation was at 0.2% m-m, lower than the estimated inflation of 0.3% m-m. This backdrop indicates the Fed’s less massive monetary tightening. The U.S. dollar depreciation results in appreciation of other economies’ currencies including rupiah.

From domestic outlook, the House of Representative agreed the assumptions of 2019’s state budget draft (RAPBN). The RAPBN sets forth the target of economic growth of 5.3% in 2019. It is a realistic target in light the 2018’s economic growth estimate of 5.2%.

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