Overseas news
US consumer spending, which accounts for 2/3 of all US economic activity, increased 0.4% in October after an upwardly revised 0.6% advance in September. This suggests the economy maintained its growth momentum early in the 4th quarter.
US Personal Consumption Expenditure (PCE) rose 2.3% in October year-on-year from 2.1% in September. Meanwhile, annual core PCE climbed to 2.8% in October from 2.7% in September.
Released monthly, the PCE index reflects changes in the prices of goods and services purchased by consumers in the US. To better represent broad price changes, the core PCE index doesn’t include food and energy prices, which are typically quite volatile.
US new orders for durable goods or items meant to last at least three years increased to 0.2% in October from a revised 0.4% decline in September.
As opposed to fast moving consumer goods or FMCGs, which are consumed faster and so are purchased more often, durable goods tend to be more expensive.
Local developments
The Philippine Stock Exchange (PSE) has set a target of P120 billion in capital in 2025, up from P79 billion this year. Despite missing the target for Initial Public Offerings (IPOs) this year, PSE President Ramon S. Monzon said the PSE still expects to have 6 IPOs and to raise up to P150 billion next year.
An IPO is the first time a company publicly offers shares of its ownership for sale to individuals or other institutions. Having several of these in a year may signify rising confidence in an economy’s future conditions.
Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona Jr. said that should the peso weaken to P60 per dollar, he would prefer it to occur in an orderly manner, in order to avoid a one-sided market.
A one-sided market is the term used to describe a market which is moving strongly in a certain direction.
The news doesn’t hint at significant changes coming soon, so it might be too early to make big portfolio revisions. Following the news and keeping a cool head might be your best move for the moment.
