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Overseas news
Tensions in the Strait of Hormuz escalated after Iran struck a commercial cargo ship, prompting other vessels to turn back. Oil prices climbed following the attack while US stocks were largely unchanged.
To mitigate threats, many ships transiting the strait will likely disable their automatic identification systems to avoid detection.
This latest development could raise concerns over the stability of the 60-day agreement between the US and Iran, which involved commitments to resolve the Middle East conflict.
Local developments
The national government's budget deficit widened by 36.73% year-on-year to reach P198.5 billion in May. A drop in non-tax collections offset the increase in tax revenues.
A budget deficit is what happens when the government spends more than it earns. It can be lessened by boosting revenue (usually through taxes) and/or cutting spending.
Meanwhile, the Philippine Stock Exchange index (PSEi) rebounded due to bargain hunting as investors took advantage of a previous drop in share prices. The peso also strengthened amid an initial decline in oil prices.
Renewed tensions in the Middle East could affect investor sentiment, and so you may want to adopt a wait-and-see stance for now. You can choose to maintain your strategy as you wait for further developments.
