Overseas news
US stocks rose as the debt ceiling bill made it through the US Congress, while the 10-year Treasury yield dipped after unit labor costs and manufacturing data rose lower than expected.
The US dollar stumbled further on account of US’ manufacturing data and signals from officials of the US Federal Reserve (the Fed) that there may not be an interest rate hike in its upcoming meeting.
While an end to the debt ceiling issue would bring some stability to the US, factors such as manufacturing output and changes to the interest rate can all contribute to how various assets are performing.
Local developments
The Philippine manufacturing activity measured by the Purchasing Manager’s Index (PMI) grew to 52.2 in May from 51.4 in April as new orders came in. This encouraged production and hinted that operating conditions are getting better.
PMI shows if market conditions are seen as expanding (index over 50), staying the same (index at 50), or contracting (index under 50).
The roadmap of the Masagana Rice Industry Development Program (MRIDP) got approved last Wednesday, according to the Presidential Communications Office (PCO).
This program aims to achieve 97.5% rice self-sufficiency for the Philippines in 5 years. If successful, it would go a long way in helping the country achieve food security, which is essential for nation-building.
Amid criticisms, the recently senate-approved Maharlika Investment Fund is expected to support the current administration’s economic goals under its Medium-Term Fiscal Framework (MTFF) and the 8-point Socioeconomic Agenda, according to Finance Secretary Benjamin Diokno.
This investment fund is a sovereign wealth fund that is expected to generate income for the government and help promote economic development.
The latest overseas and local developments are generally positive, but it may be premature to assume that things will be heading up from now on. Staying cautious may still be the right move for now.
