.jpg)
Overseas news
US stocks ended down on Thursday amid the lack of economic data and news that could significantly change investor sentiment. Investors also likely took the opportunity to adjust their portfolios ahead of the 3rd quarter earnings season.
The US government has been shut down for over a week, delaying the release of economic reports. Investors monitor economic data and corporate earnings reports to gauge the direction the markets might take.
Meanwhile, gold prices fell 2% on Thursday while the dollar rose. Gold investors sold following a ceasefire deal between Israel and Hamas.
Demand for gold tends to decline when risk sentiment improves. This is because gold is considered a safe haven asset, and so it’s generally more attractive during times of uncertainty.
Additionally, the US Treasury finalized a $20 billion currency swap framework with Argentina. The US also bought Argentine pesos in the open market on Thursday to help stabilize the exchange rate.
Currency swaps are agreements between 2 parties to exchange their currencies with each other at a specified rate over a predetermined period.
Local developments
The Bangko Sentral ng Pilipinas (BSP) reduced the target reverse repurchase rate by 0.25% to reach 4.75%. The BSP has now lowered the policy rate for 4 consecutive meetings as it cited a weakened economic outlook and declining investor confidence.
Lower interest rates may boost economic activity by making it less expensive for businesses and consumers to borrow money. Such changes also tend to boost investor interest in stocks.
Meanwhile, the ASEAN+3 Macroeconomic Research Office (AMRO) maintained its economic growth forecast for the Philippines of 5.6% for this year and 5.5% for next year despite global trade uncertainties.
Economic growth is measured by tracking changes in the GDP, which is the value of everything a country produces in a given period.
The latest news shows no clear signs of where the markets are heading in the long run. For now, you may want to stay cautious and maintain your strategy as you wait for further developments.
