Market Recap
JCI closed lower yesterday amid the rupiah depreciation. Investors also kept their eyes on the U.S. new tariffs imposed on Chinese goods. Top Losers: Property (-1.48%), Consumer (-1.22%), Agriculture (-0.89%).
The global markets moved positively amid the tariff of 10% on Chinese products by the U.S. government. China stated to retaliate by imposing USD60 billion on the U.S. products. The tariffs will take into effect on September 24, 2018.
Today’s Outlook: Tit-for-Tat Tariffs by China
We estimate JCI to rally with the support range of 5781-5787 and resistance range of 5869-5879. The positive sentiment comes from the intensively protracted trade war between the U.S. and China. After President Trump announced the tariffs of USD200 billion on Chinese products, China retaliated by imposing USD60 billion on the U.S. products. However, the tariffs import implemented is only 10% lower than the initial plan of 20%. This escalating tension signals that the current tension is not as looming as what investors estimate.
From the domestic outlook, investors likely digest the government’s latest policy set for overcoming rupiah depreciation. The government has the commodities exporters to keep 50% of exports in Indonesia within 6 months.
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