JCI posted two-day foreign outflows streak from 3-4 Sept. 2019 on grounds of the wobbly global state. The US additional tariffs on Chinese products taking into effect on Sept. 1 worsened the disputes between the two economies and delayed trade negotiation between them. That failed to ease markets’ worries about the global economy and caused foreign outflows from
volatile equities in emerging markets. Meanwhile, such a sentiment as August’s inflation was a positive catalyst for JCI, but the readings proved futile to drive JCI to reign at green zone on a few early days of last week. Statistic Indonesia announced that August’s inflation was at 3.49% y-y, higher than 3.2% y-y, but still fell at BI’s target range. After a three-day tepid streak, JCI was rebounding on 5 Sept. 2019 thanks to a number of external key drivers. The withdrawal of an extradition bill by Hong Kong Chief Executive Carrie Lam, Britain’s parliament approval for a bill preventing no-deal Brexit, and The Caixin/Markit manufacturing PMI at 50.5 in August drove JCI to Thursday’s rebounding close. On Friday, Sept.6, 2019, the official reading for August’s forex reserves at USD126.4 billion, higher than July’s reading was a driver for JCI slightly advancing on Friday.
Download full report HERE.