Overseas news
US stocks slipped, led by the tumble in Apple shares. This happened over continuing worries about more interest rate hikes from the US Federal Reserve (the Fed) and brewing concerns about pressures from China on tech companies.
Many of the US tech giants do significant business in China, but the current situation is making it difficult for normal trade to happen. That could affect the profitability of these companies.
US jobless claims fell unexpectedly to the lowest level of 216,000 last week from 229,000. This is the lowest figure since February, pointing to a still-tight US job market.
A "tight" labor market is one that has a strong demand for workers but less job seekers, which may keep salaries, and therefore, inflation, high. This may prompt the Fed to keep raising rates.
Local developments
Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr., said in an interview that the Philippines may reach its inflation target of 2%-4% by the first quarter of 2024 and that the BSP might revise its full-year inflation forecasts upward.
The BSP has a primary mandate of promoting price stability through inflation targeting. Keeping in mind BSP's inflation target can give analysts and investors an idea of the central bank’s future steps in managing inflation.
The Philippines’ gross international reserves (GIR) mildly slipped to $99.81 billion as of end-August from $99.95 billion the prior month. This was due to foreign debt payments and the devaluation of the central bank’s gold holdings.
The higher GIR is, the more resilient and flexible a nation can be when the market is volatile.
The Philippines is planning a 5-year rice supply agreement with Vietnam after Vietnamese Prime Minister Pham Minh Chinh and President Ferdinand Marcos Jr. met on the sidelines of the ASEAN summit in Indonesia.
Rice has been significantly impacted by rising global prices and domestic shortages, which seep into inflation.
Today’s news isn’t likely to cause big changes to investments in the near future. You may want to avoid big decisions for now while staying updated with current financial events.
