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Bourse hits 20-month high on renewed optimism

Volume turnover was a healthy P10.15 billion with a new foreign selling of P304.53 million

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The Wall Street in Manhattan, New York City. / SPENCER PLATT/Agence France-Presse

The index closed at a 20-month high of 7,311.72 or 14.64 points higher from the previous day as more indicators of opening the economy are released by the government and while the infection trend falls.

On Wednesday, the Department of Health reported 3,656 Covid-19 cases, the lowest tally for over three months.

Volume turnover was a healthy P10.15 billion with a new foreign selling of P304.53 million.

Shares also tracked the performance of the United States market as investors parsed the US Federal Reserve’s latest Beige Book reading.

According to the report, the US economy is growing at a modest to moderate pace, but remains under pressure from inflation and labor shortages, Regina Capital Development Corp. managing director Luis Limlingan said.

Tech underperforms
The technology sector continues to underperform with markets turning their attention to the the third quarter reporting season from a number of big names.

Fed governor Randal Quarles said he was beginning to focus more of his attention on inflation and that there are “significant upside risks” to the widely-shared view that price pressures will decline sharply next year, in a Wednesday speech to the 2021 Milken Institute Global Conference.

Meanwhile, Asian markets mostly shook off the China blues for a steady trading session.

Most Asian markets rose as Wall Street’s positive earnings continue to smother inflation and taper worries, while Hong Kong fluctuated and Evergrande tumbled with the property giant resuming trading after saying a unit sale had fallen through.

Surging global prices have sent shivers through trading floors for much of this year as central banks are forced to tighten their ultra-loose, pandemic-era monetary policies, but a string of broadly on-target or forecast-beating corporate reports have provided a much-needed salve.

Asian markets rise further on more earnings joy as Fed mulls taper.

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