Overseas news
In the US, the S&P 500 ended at its highest in over 2 weeks on Monday, thanks mostly to chipmaker Nvidia and auto manufacturer Tesla. This came after signs that the Trump administration might take a more measured approach to tariffs against US trading partners.
Worries over the tariff policy have been the main driver for uncertainty in the US, which has tended to reflect in the stock market.
Meanwhile, S&P Global’s US Composite PMI Output Index increased to 53.5 this month from 51.6 in February. This index tracks the manufacturing and services sectors.
In Europe, HCOB’s preliminary Composite Euro Zone Purchasing Managers’ Index, also compiled by S&P Global, rose to 50.4 this month from 50.2 in February, its highest since August 2024.
Both indices show if market conditions are seen as expanding (index over 50), staying the same (index at 50), or contracting (index under 50).
Local developments
The Philippine Stock Exchange index (PSEi) fell on Monday due to uncertainty about US President Donald Trump’s plan to impose reciprocal tariffs next week.
The trading session, which was shortened due to technical glitches, also showed a value turnover that was lower than normal.
Further, the government is currently reviewing the tariffs levied on imported rice ahead of the local harvest season next month. Executive Order (EO) No. 62, which took effect in July 2024, lowered import tariffs on rice to 15% from 35% until 2028 to tame inflation.
Volatile food prices have been one of the factors affecting domestic inflation. Higher local output/production in the absence of natural calamities should ideally translate to more supply and therefore lower prices, and may also lessen the need for lower tariffs on imports.
These developments aren’t pointing strongly in a particular direction, although this may change once the new and revised US tariffs are implemented. For now, you may be better off avoiding big decisions.
