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Overseas news
In the US, the growth in available jobs picked up in September, but the unemployment rate also climbed to a 4 year high of 4.4%. This happened as higher tariffs and AI adoption affected hiring.
Labor data matters to investors since it is used as an indicator of economic health and can help policymakers like the US Federal Reserve (the Fed) decide what to do with interest rates.
Relatedly, major US stock indices ended down on Thursday as the mixed jobs report dimmed hopes of rate cuts. The decline also likely resulted from renewed concerns that some technology stocks may be overvalued.
Investors monitor changes in interest rates since lower rates can make borrowing less expensive for consumers and businesses. The opposite is true when rates are increased or kept high.
In turn, borrowing activity can have an impact on economic growth and investment performance.
Local developments
The government has generated nearly P7 billion in revenue since June from the new 12% digital services value-added tax (VAT).
The collection can help lift economic growth, which slowed in the 3rd quarter as the ongoing corruption probe affected government spending.
Meanwhile, the Philippine peso slid to P59.065 per dollar on Thursday. Lower expectations of a US Fed rate cut influenced outlook and reduced trading volumes.
Investors tend to flock to countries with higher interest rates, and so a currency may strengthen when rates are raised or kept steady.
Additionally, the Philippines posted a $706 million balance of payments (BoP) surplus in October. This reverses last year’s deficit and helps narrow the overall deficit recorded during the first 10 months of the year.
The latest news brings uncertainty and may prompt investors to adopt a wait-and-see approach. You might also want to wait for stronger signals of where the markets are headed before making big investing decisions.
