JCI Slowed
Last week, JCI mostly closed lower due to 3-consecutive-day foreign outflows from its portfolios, driven by murky global sentiments and no positive domestic sentiments. Iran seized the British-flagged oil tanker, Stena Impero, in the Strait of Hormuz, for Stena Impero violated international maritime rules. The seizure exaggerated the worsening tensions between Iran and Western powers and was a threat for the US to revoke its legal sanctions, impeding Iran’s economy. The conflict pictures crippled global trades and retreats commercial activities between Indonesian and Iran. Markets is still anticipating ECB and the Fed’s monetary policies as they predict ECB to take less aggressive stance of slashing its rates by 25 bps. ECB’s decision to hold off loosening monetary policies by leaving its rates unchanged is its strategy for precise easing monetary policy it can decide. The proximity of FOMC’s next week rate cut decision is ECB’s top tactical preference as the Fed’s decided rates impacts the single currency’s economies. ECB also banks on the euro economies data— 2Q19 inflation and economic reading—prior to the calculation of its monetary rates. JCI, on a weekly basis closed lower at 6,325.
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