Trade brisk but index weakens

Asian stock markets rose ahead of an update on the US jobs market while the Federal Reserve weighs whether more rate hikes are needed to cool surging inflation.

By TDT

7 days ago

A higher than average volume traded in the market yesterday as index funds rebalanced their position to reflect the new constituents; mainly the entry of Semirara over Security Bank.

Also, the market is awaiting for jobs report for further clues about the United States (US) Federal Reserve’s (Feds)path of rate hikes and the state of the economy.

The Philippine Stock Exchange index closed the week at 6,405.5 down 77.6 points.

Economists expect 258,000 jobs were added in July, down from 372,000 in June, according to Dow Jones. Unemployment is expected to hold steady at 3.6 percent. Locally, July consumer price index edged higher but showed some signs of deceleration compared to the previous month, with the latest print at 6.4 percent, Regina Capital Development Corp. managing director Luis Limlingan said.

Fuel prices cooling

Global oil prices dropped to their lowest levels since before Russia’s February invasion of Ukraine as traders fretted over the possibility of an economic recession later this year that could torpedo energy demand. Benchmark Brent crude futures ended the day 2.75 percent lower at $94.12 a barrel. US West Texas Intermediate crude futures settled 2.3 percent lower at $88.54 per barrel.

Asian stock markets rose ahead of an update on the US jobs market while the Feds weighs whether more rate hikes are needed to cool surging inflation.

Investors were looking ahead to monthly US employment numbers for possible signs of weakness that might prompt the Fed to decide it needs to ease off on rate hikes to cool inflation. Other data suggest the economy is slowing, which should reduce pressure for prices to rise.


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