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Overseas news
US stocks ended slightly lower on Monday. This happened amid rising US Treasury yields and the release of data showing tariffs are still weighing on manufacturing.
Investors are also likely adopting a wait-and-see stance ahead of the US Federal Reserve’s (the Fed) decision on interest rates, due next week.
Changes in interest rates matter to investors since they influence loan and deposit rates, bond yields, and even the performance of other asset classes such as stocks.
Meanwhile, US consumers spent $23.6 billion over a 3-day online shopping period after Thanksgiving, beating analyst expectations and kicking off a strong holiday season.
Consumer spending accounts for more than two-thirds of economic activity in the US, and so is a good indicator of the country’s economic health.
Local developments
The Philippine Manufacturing Purchasing Managers’ Index (PMI) fell to 47.4 in November from 50.1 in October. This marks the sharpest drop in over 4 years as output and new orders weakened.
PMI is an index that shows if market conditions are seen as expanding (index over 50), staying the same (index at 50), or contracting (index under 50).
Additionally, the Philippines is expected to miss its 5.5-6.5% economic growth target this year due to weather disturbances and the corruption issue. This was according to Department of Economy, Planning, and Development Secretary Arsenio Balisacan.
The ongoing probe into government projects has led to a slowdown in public spending, particularly in construction. This has affected the growth of the country’s gross domestic product (GDP).
Meanwhile, the Department of Energy (DOE) expects electric vehicle (EV) sales to reach 50,000 units in 2025. Data from the Land Transportation Office (LTO) shows over 41,000 EVs were registered in the first 9 months of the year, a huge jump from 9,000 in 2024.
The current administration has taken measures to promote the use of EVs in the country as it targets 50% EV adoption on Philippine roads by 2040.
Globally, investors may be staying cautious as they wait for the Fed’s rate decision. You may choose to do the same and continue following your strategy if it still works for you.
