Market Recap
JCI finished on a low note yesterday as the consumer sector posted a loss and the rupiah is depreciated. Top Losers: Consumer (-1.59%), Mining (-1.57%), Infrastructure (-1.53%).
Global markets snapped lower yesterday as the new tariffs between the world’s two powerful economies taking into effects. Besides, China also cancelled the trade talks with the U.S. On the other side, the new turmoil arising from Trump’s Administration also constrained the U.S. trade movement.
Today’s Outlook: IMF’s Credit Funds for Argentina
We estimate that today JCI is likely sluggish with the support range of 5824-5836 and resistance range of 5908-5912. Investors focus on the global sentiments of pressures on emerging economies. Aiming to ensure investors its liability for the payment of its sovereign bonds matured in 2019, Argentina plunging into a deep depreciation is seeking credit injection of USD3-5 billion from IMF.
Learning from Argentina’s financial crisis, Bank Indonesia (BI) concertedly controls the rupiah movement. BI’s Board of Governors Meeting held in this week coupled with the possibility of the U.S. monetary tightening likely gives rooms for BI’s benchmark rate hike.
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