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Overseas news
In the US, investors see an increased possibility that the US Federal Reserve (the Fed) might deliver a rate cut in December. This led to a rebound in the price of Bitcoin following recent lows.
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.
Meanwhile, the eurozone’s Economic Sentiment Indicator (ESI) rose to 97.0 in November from 96.8 last month. This slight improvement marks a 2-year high for the indicator.
The ESI is a gauge of how businesses and consumers view economic conditions in the eurozone. It tracks the confidence level of manufacturers, service providers, consumers, retailers, and constructors.
A reading above 100 indicates above-average economic sentiment and vice versa.
Local developments
S&P Global Ratings has maintained the Philippines’ long-term “BBB+” credit rating. The agency also affirmed a “positive” outlook for the country, citing strong growth prospects despite internal challenges.
S&P’s ratings help investors form a view on whether an issuer has the capacity to repay its debts on time and in full. This could help investors, especially foreign ones, make investing decisions.
Meanwhile, deposits in Philippine banks rose by 7.55% year-on-year as of September to P21 trillion, according to the Bangko Sentral ng Pilipinas (BSP).
Banks can use deposits to fund loans made by customers, which in turn may support economic growth if there are a significant number of borrowings. When deposits are higher, banks can lend more.
Additionally, sales of construction materials are expected to remain sluggish until early next year due to corruption issues. This was according to the Cement Manufacturers Association of the Philippines (CeMAP).
The ongoing probe into government projects has led to a slowdown in public spending, affecting the pace of economic growth.
The latest developments, while largely positive, aren’t pointing strongly to a particular direction. It might be wise to stay cautious with your investing decisions and continue following your strategy for now.
