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Overseas news
In China, exports grew at their slowest pace in 6 months by rising 4.4% year-on-year in August. Imports, on the other hand, rose by 1.3%.
Changes in a country’s imports and exports often have a significant impact on that nation’s economy, and so such figures are closely watched by investors.
Also in China, the foreign trade law is being changed for the first time since 2004. This move will allow it to legally bolster countermeasures in trade disputes and protect its export-driven economy amid rising tariff threats.
In Japan, Q2 Gross Domestic Product (GDP) growth was modified to 2.2% on an annualized basis. This was due to stronger consumption and inventory growth.
GDP is the total monetary value of all finished goods and services produced within a country during a certain period. It is used as a way to measure an economy’s size and health.
Local developments
The peso surged to a 1-month high of P56.69 per dollar. This happened as weak US jobs data fueled expectations of a US Federal Reserve (the Fed) rate cut next week.
Rising unemployment rates can cause central banks to cut interest rates in order to encourage economic growth and activity. These, in turn, may lead to creation of new jobs.
Further, the Philippine government fully awarded its P25 billion Treasury bill offer, as investor demand—driven by expectations of monetary easing—pushed yields lower across all tenors. Bids totaled over P156 billion.
Yields of such debt instruments fall when demand rises, and the opposite when there isn’t much interest from would-be investors.
Without sure signs of changes happening soon, this might not be the right time for big investing decisions. Following relevant news might be your best move for now.
