Overseas news
US solar energy stocks plummeted 40% on Thursday. This happened as the House of Representatives passed a bill that may end subsidies to the renewable energy sector.
The “One Big Beautiful Bill Act” would remove tax incentives for renewable energy projects if approved by the US Senate and signed into law.
Meanwhile, the US Purchasing Managers’ Composite Index (Composite PMI) increased to 52.1 this month from 50.6 in April. Business activity improved amid a pause on US President Donald Trump’s new tariffs.
The US Composite PMI tracks the manufacturing and services sector. The index shows if market conditions are seen as expanding (index over 50), staying the same (index at 50), or contracting (index under 50).
Local developments
Local stocks fell on Thursday after the resignation of key members of President Ferdinand Marcos Jr.’s economic team. They followed the president’s order for members of his Cabinet to submit courtesy resignations.
Changes in leadership may impact the economy and financial markets since new leaders can shift a country’s policies.
Meanwhile, hog production fell 3.7% year-on-year in the 1st quarter. This was a smaller decrease than the 4.3% decline during the same quarter last year.
Pork prices remain elevated due to the African Swine Fever. The supply and prices of local food items can affect many consumers and may also impact inflation if such items become more expensive.
Additionally, the Ninoy Aquino International Airport (NAIA) saw a 15.82% year-on-year increase in passenger volume in the 1st quarter, driven by strong growth in domestic travel.
The increase in local travel may allow tourism to contribute to the growth of various local economies as well as the national economy.
With uncertainty in the news, it might be best to remain cautious with your investing decisions for now. You may also choose to stay liquid so you can act on opportunities whenever appropriate.
