JCI Made Sideways Moves
An inverted yield curve—10-year yields bottoming 2-year ones—which is a preceding signal of the US recession rattles markets as JCI also retreated to close lower on early days of last week. The protest against controversial extradition bills in Hong Kong bursting into a riot and developing to flights cancelation intensifies the global chaotic state as investors pull their money out from stock markets, i.e. JCI witnessing a flood of foreign capital from its portfolios on the early days of last week. But, the delay of tariffs on Chinese goods was a boost for JCI’s moves to rebound on 14 August’s trading day. The United States Trade Representative removed a number of products from the tariff list and put off the implementation of tariffs on Chinese products to December 15th. Back to domestic sentiments, July’s trade balance reading was in deficit and impeded JCI’s move. Statistics Indonesia (BPS) reported July’s deficit of USD63.5 million because non-oil and gas trade surplus shrank. President Jokowi’s speech on the 2020 State Budget Bills drafted based on the 2020 economic growth estimate of 5.3% on the back of increasing consumption and investment. JCI closed slightly higher at 0.07% to 6,286 on Friday (08/16).
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