Global shares gain from positive vibes
The Philippine Stock Exchange index recovered lost ground on Thursday, climbing back to 6,613.73 points, up by 67.62 points or 1.03 percent due to bargain hunting of foreign investors
Daily TribuneThe Philippine Stock Exchange index recovered lost ground on Thursday, climbing back to 6,613.73 points, up by 67.62 points or 1.03 percent due to bargain hunting of foreign investors
Global stock indicators rose on Thursday as investors gear up for the release of major US inflation data that could have a huge bearing on the Federal Reserve's timetable for cutting interest rates.
The positive vibes on trading floors follow gains on Wall Street, where tech firms bounced after a relatively dour start to the year and dealers were also gearing up for the start of corporate earnings season.
Philippine shares settled higher as investors made bets ahead of the US December inflation reading, according to Regina Capital Development Corp. managing director Luis Limlingan.
The consensus is a 3.8 percent prices rise versus the prior 4 percent, he added.
The Philippine Stock Exchange index recovered lost ground on Thursday, climbing back to 6,613.73 points, up by 67.62 points or 1.03 percent due to bargain hunting of foreign investors.
Fed disappoints
After the disappointment of last week's minutes showing the Fed remained keen to hold rates at 22-year highs for some time, analysts said the consumer price index reading Thursday could play a key role in near-term market dynamics.
Observers warned a miss to the upside in inflation could spark fresh selling in equities.
Dealers have struggled at the start of the year as the rally at the end of 2023 peters out on worries they may have been a little too eager to price in a first rate cut by March followed by several more over the next 12 months.
However, a below-forecast reading could light the fuse for a buying spree, they said.
Matt Eagan, at Loomis, Sayles & Co., said the report would likely come "in line with consensus.”
"Our expectations are for headline inflation to continue to cyclically bottom well below three percent, possibly to 2.5 percent, and for the Fed to then start cutting rates sometime over the next six months."
New York Fed boss John Williams said rates were well placed to get inflation back to the bank's two percent target but he expected officials would "need to maintain a restrictive stance of policy for some time to fully achieve our goals.”
Bitcoin held at around $46,600, having burst above $47,700 earlier in the day after news that the US Securities and Exchange Commission had given the go-ahead for ETF trading.
The SEC approved the plans for 11 ETFs to list on leading exchanges including the New York Stock Exchange "on an accelerated basis,” it said.
Analysts said the unit failed to take off after the news as the decision had largely been priced in over recent weeks.
ETFs are traded on public markets, granting investors exposure to price movements in asset prices without taking direct ownership of the underlying assets.
