Market Recap
JCI closed lower yesterday. Investors responded negatively August’s trade deficit bigger than estimate. Top Losers: Miscellaneous Industries (-3.07%), Infrastructure (-2.50%), Basic Industry (-2.49%).

Global markets snapped lower yesterday after Trump imposed new additional tariffs on Chinese goods. Trump’s stance constrained the movement of tech. stocks in Asia and the U.S. markets. On the other hand, European markets closed flat as the retail sector marked outstanding performance.

Today’s Outlook: Confirmation of New Import Tariff
We estimate JCI to be sluggish with the support range of 5781-5786 and resistance range of 5869-5879. From global outlook, the negative sentiment stems from Trump’s new 10% tariffs of USD200 billion on Chinese goods to take effects in next week. In fact, the tariff will rise to 25% at the end of the year. If China retaliated the U.S. tariff, the U.S. threatened to impose an additional tariff for USD265 billion of Chinese goods.

From the domestic outlook, August’s trade balance deficit was higher than estimate. It was attributable to exports of August marked underperformance, whereas imports of August soared.

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