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Market weakens but stays over 7K

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The stock market tracked US indices and dipped further on profit-taking but stopped short of sinking below the psychological 7,000 support.

The Philippine Stock Exchange index (PSEi) slid 0.55 percent to finish the day at 7,068.92 on 151,161 shares exchanged valued at P10.867 billion.

Shares fell with stateside investors awaiting the release of September consumer price index (CPI) and third quarter earnings of major firms.

Analysts will also get some clues about the US Federal Reserve’s monetary policy plans from digesting the soon-to-be-published Federal Open Market Committee minutes that is due for release.

Lower-than-expected August job openings also dragged the market to close lower, Regina Capital Development Corp. managing director Luis Limlingan said.

Boosting sentiment is the relaxing of curfew hours in the National Capital Region to 12 a.m. until 4 a.m. due to the declining daily tally of Covid-19.

Taper may hit soon
Asian markets were mixed as investors awaited key US inflation data that could play a major role in the Federal Reserve’s plan to tighten monetary policy, while concerns over a global energy crunch also jangled nerves.

With the world’s top economy well on the recovery track, the US central bank had signaled it will begin to wind back the massive financial support put in place at the start of the pandemic.

But supply chain bottlenecks, surging demand fueled by reopenings and spiking fuel costs have sent inflation soaring in recent months, putting pressure on bank chiefs to act to prevent prices from running out of control.

An extended period of higher-than-targeted inflation is ramping up expectations that the Fed will have to lift interest rates after it has finished tapering its massive bond-buying program.

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