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Overseas news
On Thursday, major US stock indices closed with mixed results. Tech stocks like Nvidia slipped while defense shares rose as US President Donald Trump called to increase the US military budget by 50% to reach $1.5 trillion in 2027.
If approved by lawmakers, the proposed budget would mark the largest-ever increase in US defense spending. This year, it is set at $901 billion.
Further, gold prices fell on Thursday as demand was affected by a stronger US dollar, which made gold more expensive for overseas buyers. Investors are also awaiting key US jobs data for further direction.
Employment data matters to investors since it can hint at economic conditions and possible changes in interest rates, which may then influence the direction the markets will take.
Meanwhile, Japan’s household spending rose 2.9% in November. This was a rebound from October’s slump and the opposite of a forecasted 0.9% decline.
Household spending makes up a large part of a country’s gross domestic product (GDP) and so it’s an important indicator of an economy’s health. It’s also 1 of the factors that a central bank looks at when deciding what to do with policy rates.
Local developments
The Philippines plans to increase the price cap on rice imports to P45/kg from P43/kg starting January 16. This is due to rising costs from tariffs, a weaker peso, and global price shifts, according to the Department of Agriculture (DA).
The planned move comes after rice imports dropped to a 4-year low of 3.37 MMT (million metric tons) in 2025 following a 4-month freeze. If implemented, these higher rice prices may impact inflation.
Meanwhile, the peso rebounded to P59.17 per dollar on Thursday, strengthening by 18.5 centavos from its record-low close.
This happened as markets responded to hints that the Bangko Sentral ng Pilipinas (BSP) might be ending its streak of easing interest rates.
Global investors tend to flock to countries with higher interest rates, and so a currency may strengthen when rates are raised or kept steady.
The latest news is mixed with no solid signals of major changes happening right away. It may be ideal to keep following your strategy if it still works for you.
