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Overseas news
Major US stock indices closed sharply higher Monday as AI-related stocks surged. Meta Platforms led the jump amid reports that the social media company is planning to cut 20% or more of its workforce.
Investors likely viewed the layoff plan as a positive sign for the company’s future efficiency and profitability. Market sentiment also improved as oil prices dropped after a few ships were allowed to pass through the Strait of Hormuz.
Relatedly, oil exports from the Middle Eastern Gulf plunged by over 60% in mid-March compared to the previous month.
This happened as the US-Iran conflict shut the Strait of Hormuz, triggering the largest-ever global supply disruption and driving crude prices to 4-year highs and fuel costs to record levels.
Additionally, gold prices slipped Monday despite the demand for “safe haven” assets, as the Middle East-driven inflation fears caused concerns that interest rates may remain high for longer.
Central banks tend to raise interest rates or keep them high to help manage inflation, since the elevated cost of borrowing money can slow spending activity.
Local developments
Diesel prices in Metro Manila are expected to soar past P100 and possibly hit P115 per liter this week. Gasoline and kerosene are also facing steep hikes.
Relatedly, the House of Representatives approved a bill granting President Ferdinand Marcos Jr. authority to suspend or reduce fuel excise taxes for up to 6 months during emergencies.
If enacted, lower taxes may help ease motorists’ burden from surging pump prices. Aside from impacting private vehicle owners, high fuel prices can affect logistical costs, which contribute to the prices of consumer goods.
The news is mixed without a clear sign of how long the ongoing conflict may last. You might not want to make big portfolio decisions in the meantime.
