JCI Slowed
The German and Chinese authorities are poised to roll out stimulus package, tackling impacts of a slowdown in the broader economy on both economies. These two external sentiments gave boosts for JCI’s movements on the early days of last week. The German authorities are committed to ditching balanced budget regulations and performing a bond-buying program should the murky economy turn into a recession. Meanwhile, the People’s Bank of China lowers its borrowing costs in an attempt to increase companies’ appetite for taking loans. The minutes of FOMC meeting announced on Wednesday (08/21) confirmed that July’s looser monetary was a “recalibration” rather than a beginning of another aggressive looser cycle, appropriate for most of 2019. Bank Indonesia (BI) responded to the Fed’s move by cutting BI 7-DRRR at 25 bps to 5.50% decided at BI’s Board of Governors meeting held from August 21 to 22, 2019. JCI was rebounding on 23 August’s trading session along with the US dollar’s exchange rate to slightly strengthen at 0.14%. Nevertheless, JCI made a week drop of 0.5% to close at 6,255.
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