US stocks ended mixed after the government stepped in to support the banking sector after the failure of Silicon Valley Bank and Signature Bank.
The shares of many banks plunged after the fear and uncertainty of the recent closures, while tech stocks rebounded from last week’s fall.
US bond and gold prices, on the other hand, shot up in a “flight to quality.” This is the term for investors moving their money from one investment to another that has less risk.
The yield on the 2-year US Treasury note plunged by more than 0.50% in its biggest 1-day slump, the largest over a 3-day period since the infamous Black Monday of October 1987.
The Philippine Stock Exchange Composite Index (PSEi) declined by 45.43 points, or 0.68%, to end at 6,544.45 on Monday.
This was due to concerns over the global financial sector (led mostly by the developments in the US) and it happened ahead of the release of US consumer inflation data, which will be locally available on March 14.
Vehicle sales in the Philippines rose by 27.2% year-on-year to 30,905 units in February, according to a joint report by the Chamber of Automotive Manufacturers of the Philippines (CAMPI) and the Truck Manufacturers Association (TMA).
Vehicle sales figures can hint at an economy’s health. When things are good, such sales tend to pick up as consumers and businesses are more willing to spend, and the opposite when the situation isn’t positive.
The Philippines’ debt inflows fell by 13% to P1.97 trillion in 2022 as the country skipped issuing in the euro bond market for the first time in 4 years. There was also no issuance in the domestic dollar bond market.
Debt inflow is the term for foreign debt, whether to private individuals, institutions, or governments. While its presence isn’t automatically bad, high levels of foreign debt can impede economic growth.
Developments in the US have the potential to affect local markets to some extent, but only time will tell how big the effect is. For now, staying cautious and avoiding big investing decisions might be the right move for you.