Overseas news
In the US, Wall Street closed lower on Thursday. This was due to choppy trading, with all major US stocks sliding amid solid labor market data, a rising dollar, and tumbling Tesla shares.
The combination of these conditions likely caused traders to be unsure of the direction that the market will head and may also have triggered a cautious outlook for the meantime.
On the other hand, China announced on Thursday that it has added 28 US entities, including major defense companies like General Dynamics and Lockheed Martin, to its export control list.
This affects so-called “dual-use items,” which are goods, technologies, and services that have both civil and military uses or can enhance military capability. Technical materials and other data of such items are likewise covered.
The move aims to safeguard China’s national security and interests.
Local developments
The Philippines’ Manufacturing Purchasing Managers’ Index (PMI) rose to 54.3 in December, signaling an expansion in factory activity. The December reading matches the April 2022 print and is the highest since November 2017.
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).
Also, analysts predict that Philippine inflation will stay within target in 2025. This would allow the Bangko Sentral ng Pilipinas (BSP) to continue its policy easing, which in turn could help the economy grow.
Further, former Agriculture Undersecretary Fermin D. Adriano expects local rice production to rebound in 2025. This would be due to low base effects from the significant decrease in 2024.
Rice is an important food staple in the country, and one whose price (affected by supply and demand) impacts many Filipinos.
With the year barely begun, it may be too early to decide on big portfolio changes. Keeping a level head and following the news might be your best move for the moment.
