- Growing concerns over the potential government shutdown in the U.S. have taken its toll on the global markets, including the JCI. JCI tumbled to as low as 4313 before it settled the day at 4316. All sectors fell, led by baisc industry which shed over 4%. US politicians have until the start of October to strike a budget deal to avert the shutdown. Up to now, both sides seem to be deadlocked over the issue.
- US Republicans want to delay Obamacare while making other changes to the health law, something that is opposed by the Democrats. If now deal is struck, a shutdown will ensue and in the end about 800k federal employees will be placed on temporary unpaid leave. Currently, it is estimated that about 1.4 percentage points may be shaven off the 4Q13 growth should a shutdown occurs.
- No change in the recommended stocks. MDLN and PGAS are leading the way with 4.41% and 1.96% gains, respectively, while MLPL has been downed by the most.
- Critical support for JCI now lies at 4207, as below this level the risk of accelerating decline will be heightened, opening the door to revisit 3837. Upside, the resistance lies at 4444 and subsequently at 4545. Essentially, the shutdown issue may be damaging in the short-term, but it is expected that the politicians will eventually strike a deal to solve the problem or at least to give more time for them to renegotiate.
Senin, 30 September 2013
Morning Dew - 1 October 2013
Key Points
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