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Overseas news
Major US stock indices ended slightly higher after a volatile session. Falling oil prices and cautious optimism over US-Iran peace talks offset disputes about Tehran’s uranium stockpile and control of the Strait of Hormuz.
As part of its conditions to end the conflict, the US wants the Strait of Hormuz to be reopened with no tolls. The US has also sought the removal of enriched uranium from Iran to block any potential development of nuclear weapons.
Meanwhile, Eurozone consumer confidence improved in May, according to a European Commission flash estimate. The latest reading showed an increase of 1.6 points to reach -19.0 from April’s -20.6.
The higher-than-expected reading could be viewed as a good sign because consumer confidence can hint at spending activity, a key driver of economic growth.
Local developments
The Bangko Sentral ng Pilipinas’ (BSP) Monetary Board is considering an off-cycle rate hike before its June 18 meeting amid a sharp rise in inflation. This was according to BSP Governor Eli Remolona Jr.
Central banks may raise key rates to manage inflation, which has sped up mainly due to higher fuel prices driven by the Middle East situation
Higher interest rates make borrowing more expensive and can slow down economic activity.
Additionally, the Philippine financial system’s total resources climbed 8.61% year-on-year to hit P37.45 trillion in Q1 2026.
This happened as banks and nonbank institutions expanded assets despite Middle East conflict-related challenges.
Meanwhile, the Asian Development Bank (ADB) expects Philippine economic growth forecasts to be trimmed further. ADB noted that the prolonged Middle East conflict continues to weigh heavily on economic activity.
Economic growth is measured by tracking changes in the gross domestic product (GDP), which is the value of everything a country produces in a given period.
With continued uncertainty still affecting outlook, you may want to hold off on making big changes to your portfolio and maintain your strategy for now.
