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Move to blunt oil shock cheers mart

Market index ended the day with a gain of 17.94 points at 7,419.10

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Vehicles travel a road near the White House in Washington, DC. The US Department of Energy will make available releases of 50 million barrels of oil from the Strategic Petroleum Reserve to lower oil prices and address the mismatch between demand exiting the pandemic and supply. / Ting Shen/Xinhua

Market was bought up once more following US President Joe Biden’s remark that his administration will tap the Strategic Petroleum Reserve as part of a global effort by energy-consuming nations to calm the rapid spike in fuel prices.

The market index ended the day with a gain of 17.94 points at 7,419.10.

A slew of economic data are up for release including the weekly jobless claims, Bangko Sentral ng Pilipinas update, personal income, and Federal Open Market Committee minutes, Regina Capital Development Corp. said.

A heads up: There will be no trading stateside on Thursday due to Thanksgiving holiday.

In the Philippines, the Construction Materials Wholesale Price Index rose to 4.7 percent following the downgrade in the alert level system that stirred more business activities.

End-October balance of payments print was also out, it reversed to a surplus of $476 million.

7K and beyond
First Metro Investment Corporation said in its regular Market Call report that the Philippine Stock Exchange index pierced through the 7,000 barrier in October and never looked back, as the gross domestic product swelled by above-expectations of 7.1 percent in the third quarter.

Seasonally adjusted data showed even more robust rebounds in consumer spending and services output, further fanning positive sentiment already evident in the equities market.

We think that infrastructure spending will accelerate anew in the final quarter with the official start of election campaign season in October, while slower inflation to below four percent by November and the Christmas season should fuel stronger consumer spending, Market Call noted.

It added bond yields moved up in October in response to the faster US inflation amid elevated crude oil prices, but Market Call expects these to reverse by yearend.

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