Trump’s tariffs deadline weighs down on PSEi
An anticipated surge in tariffs across the globe may push the local bourse deeper into the red territory this week as US President Donald Trump’s 90-day truce comes to an end on July 9.
Japhet Tantiangco, research head at Philstocks Financial Inc., said over the weekend there may be “cautious sentiment” among investors at home as global trade uncertainties take center stage.
“An established trade deal between the US and the Philippines, or an extension of the negotiations deadline may give the market a boost,” Tantiangco explained.
Last week, the benchmark Philippine Stock Exchange Index (PSEi) closed just below the 6,400 mark as trade tensions rose, along with faster June inflation.
The local stock barometer slid 0.2 percent week-on-week to 6,395.57.
At the same time, however, prospects of two more interest rate cuts this year may just give the bourse enough of a push to break through 6,400.
Although inflation quickened to 1.4 percent in June from 1.3 percent in May, the year-to-date average remained at 1.8 percent, or below the government target range of 2 to 4 percent.
According to Tantiangco, this may give enough room for the Bangko Sentral ng Pilipinas to cut its benchmark rate twice more this year.
Trading platform 2TradeAsia.com sees the index’s psychological support level this week at 6,300 and resistance at 6,500 to 6,550.
