.jpg)
Overseas news
US stock markets hit record highs for the 3rd consecutive day on Monday. This was largely due to a rally in technology stocks.
In the US, the tech industry is responsible for a significant portion of all business done in that country. It is big enough to affect the economy, and the various stock market indices, with its movements.
Meanwhile, gold surged nearly 2% to reach a record high on Monday. This was driven by rising hopes for more US rate cuts and continued investor demand for safe haven assets amid political instability.
Safe haven assets are those that are expected to remain steady or even grow in value when there’s uncertainty in the markets.
Local developments
On Monday, a House committee began revising the proposed P6.793 trillion 2026 national budget by reallocating billions from flood control projects to boost funding for education and health.
Budget spending contributes a lot to the economy, especially on a national scale. With proper implementation, certain sectors being spent on may also increase their contributions to social welfare and economic growth over time.
Additionally, the peso gained 9.4 centavos as it rose to P57.056 against the dollar on Monday. This happened as investors reacted to the US Federal Reserve’s (the Fed) recent interest rate cut and the possibility of further reductions.
When policy interest rates are lowered in a country, its currency tends to weaken as investors look for higher returns elsewhere.
Further, the Philippines is expected to be the third-hardest hit economy in Southeast Asia by US tariffs. A report from the United Nations Development Programme (UNDP) said Philippine exports to the US are forecasted to shrink by 13%.
Increased US tariffs may affect demand for locally made goods, especially since the US is among the Philippines’ top export markets.
Today’s news is mixed but doesn’t hint that major changes will happen right away. You may want to wait for more concrete developments before making big investing decisions.
