Investors look for inspiration abroad
Investors will likely keep an eye on the US Federal Reserve’s next move as well as global trade developments this week.
This, after the Philippine bourse struggled to stay within the 6,000 level as benign inflation and a policy rate cut failed to lift investor confidence.
Trading platform 2TradeAsia.com said in an advisory over the weekend that hints about the American central bank’s next policy decision would be crucial for investors.
While the Fed is not scheduled to meet until Oct. 28, key US data will be released this week to ultimately decide the fate of interest rates, according to 2TradeAsia.
This comes after the benchmark Philippine Stock Exchange Index (PSEi) climbed 0.86 percent week-on-week to 6,089 on Friday.
The local stock barometer mostly stayed within the green territory last week, although it noticeably struggled to stay afloat.
Jonathan Ravelas, senior adviser at Reyes Tacandong and Co., pointed out that sentiment remained negative because of the flood control scandal.
“Rate cuts alone won’t reignite growth,” Ravelas said on X. “Without stronger governance, swift resolution of the ‘floodgate’ scandal and more effective fiscal spending, economic momentum will remain weak.”
“Policymakers must prioritize restoring public trust and accelerating fiscal execution,” he added.
Ravelas sees the PSEi’s likely resistance level at 6,100, a stubborn barrier that it failed to breach last week.
At the same time, 2TradeAsia said attention would shift back toward global trade tensions, especially after Washington and Beijing signaled a possible easing.
