Market Recap
Although JCI made a brief rally, it finished at a slightly low note along with the rupiah depreciation. Investors also digest the development of trade war. Top Losers: Trade (-0.56%), Consumer (-0.43%), Basic Industry (-0.29%).

Most of global markets finished on high notes after President Trump’s speech on global trade. Meanwhile, investors kept their wary eyes on the Fed’s stance of its benchmark rates. On the other side, the U.S. markets closed lower last night after the Fed’s stance of 0.25% monetary tightening.

Today’s Outlook: Powell’s Stance
We estimate JCI to rally with the support range of 5836-5845 and resistance range of 5923-5931. The positive sentiment comes from the statement of the Fed’s Chair Jerome Powell. In line with the projection, the Fed hiked its benchmark rate by 25 bps. Powell stated that the Fed must raise benchmark rate if inflation unexpectedly hikes. However, he stated that it discerned no pressure of hiking inflation to occur in near future. The backdrop caused the U.S. bond yields to lower.

From the domestic outlook, investors await the result of BI’s Board of Governors Meeting and estimate the possible hike of 25 bps with a view to anticipating the possible volatility until the end of 2018. On the other side, the positive sentiment comes from the release of August’s credit growth reaching 12.1% increasing from 11.3% in July.

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