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Overseas news
The US trade deficit narrowed by 25.3% month-on-month to $54.5 billion in January. This happened as imports fell by 0.7% and exports surged 5.5% to a record $302.1 billion, boosted by an increase in gold sales.
A trade deficit is what happens when a country imports more than it exports in a certain period.
Meanwhile, initial claims for unemployment benefits in the US fell by 1,000 to hit 213,000 while continuing claims dropped by 21,000 to reach 1.85 million.
The latest figures signal the labor market remains resilient despite job losses in February. Along with consumer prices, the job market is 1 of the economic indicators that the US Federal Reserve (the Fed) observes 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.
Local developments
Energy Secretary Sharon Garin said fuel prices are unlikely to drop soon. She noted that the global market remains volatile amid the US-Iran conflict and that any local adjustments will be made after Friday’s trading.
Aside from impacting private vehicle owners, high fuel prices can affect logistical costs, which contribute to the prices of consumer goods.
Additionally, farmgate prices of palay (unmilled rice) jumped 10.4% in February to P22.47/kg amid a strong price growth in major regions like Cagayan Valley.
This may signal a continued increase in rice prices, as changes in the farmgate price can end up affecting consumers and the inflation rate.
Further, the agricultural trade deficit widened to $1.03 billion in January as exports fell and imports increased, with total farm trade barely growing at 0.2% year-on-year.
The latest news is mixed, and geopolitical conflict continues to affect the markets. For now, you may want to avoid making significant changes to your portfolio.
