Profit-taking has dominated global markets after investors have refrained from large bets on the future direction of US interest rates, while the inflation and employment outlooks remain cloudy, analysts said.
European and Asian equity markets initially tracked Thursday’s record performance on Wall Street but then turned negative as the mood in New York shifted. This change was partly motivated by unease about potentially excessive stock valuations in the tech sector.
The Philippine Stock Exchange index posted net gains recently after dovish signals from local monetary authorities recently that could reduce borrowing and funding costs, amid prioritization of monetary easing measures and other pro-growth measures, according to Mike Ricafort, chief economist at RCBC.
Pressure remains
Buying pressure persisted reflecting renewed investor confidence. Overall, the market maintained its upward bias amid an improved outlook, according to Luis Limlingan, managing director at Regina Capital Development Corp.
Focus for global investors is switching to next week’s release of US jobs data, which could provide insights into the Fed’s plans for the coming year.`
Partial data released Thursday showed US jobless claims rose more than expected in the week ending December 6, marking their biggest increase for five and a half years and reinforcing the view of a softening labor market.
Traders welcomed Fed boss Jerome Powell’s post-meeting comments Wednesday — seen as less hawkish than feared — but the policy board’s statement suggested it could hold off from a fourth straight cut in January.
There was some concern about sector valuations after disappointing earnings from sector giants Oracle and Broadcom.
