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Overseas news
In the US, initial claims for unemployment benefits fell by 23,000 to hit 206,000 in the week ended February 14. This marks the biggest drop since November 2025, which could indicate that the job market is stabilizing.
The unemployment rate is 1 of the economic factors that a central bank looks at when deciding whether to cut or raise interest rates. Such decisions matter to investors since they may directly or indirectly affect the value of investments.
Meanwhile, the US trade deficit widened by 33% to reach $70.31 billion in December, on a seasonally adjusted basis. Delayed government data showed imports increased and exports fell.
This happened despite the Trump administration’s push to address the trade gap by introducing tariffs on goods from most countries in 2025.
A trade deficit is what happens when a country imports more than it exports in a certain period. It isn’t automatically a bad thing, as there are potential benefits, like satisfying local demand that is higher than domestic production.
Local developments
The Bangko Sentral ng Pilipinas (BSP) lowered its key policy rate by 0.25%, bringing the target reverse repurchase (RRP) rate to 4.25%. This is the 6th straight meeting in which the BSP has cut interest rates to support the economy.
Lower interest rates may boost economic activity by making it less expensive for businesses and consumers to borrow money. Such changes also tend to boost investor interest in stocks.
Additionally, the Bureau of the Treasury (BTr) raised P235 billion after offering new fixed rate Treasury notes (FXTNs). Due to strong demand, the public offer period was closed a day after the rate-setting auction.
Selling debt securities such as Treasury notes and bonds is one way that a government can raise money for its public works and other projects.
Further, the Philippines’ balance of payments (BOP) deficit sharply narrowed to $373 million in January from the $4.078 billion gap recorded in the same month last year.
The BOP is the difference between the money entering a country and the amount leaving that country within a certain period. A deficit indicates more money left the country than entered it.
The latest news is mostly positive though there’s little hint of whether the markets will move significantly in either direction. For now, it might be wise to stay cautiously optimistic with your investing decisions.
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