Philippine stocks rebounded Thursday along with most Asian markets as US inflation rate eased in April, renewing hopes that US Federal Reserve will start cutting rates by the second half of the year.
The BSP in its Monetary Board meeting on Thursday decided to keep interest rates on the overnight deposit and lending facilities at 6 percent and 7 percent, respectively.Except for financials, which declined 0.33 percent, all sectors ended in the green led by property , holding firms , and mining and oil .
The news sent all three main indexes on Wall Street to record highs, with confidence given an extra boost by figures showing retail sales well below expectations, suggesting consumers were taking a step back. “We see the April print as consistent with a direction of travel for inflation dynamics that — in the context of moderation in the real economy—can yield a September cut followed by a second in December,” Evercore’s Krishna Guha said.“The market likes it,” said Gary Pzegeo of CIBC Private Wealth US.
“It should help quieten, at least for now, any concern the Fed’s confidence rates will prove sufficiently restrictive.”Still, Minneapolis Fed boss Neel Kashkari was keen to move cautiously as he questioned how much of an impact monetary policy was having on inflation.“And that tells me we probably need to sit here for a while longer until we figure out where underlying inflation is headed before we jump to any conclusions.
And Asia extended the advances, with Hong Kong returning from a midweek break on a strong note, while Shanghai, Sydney, Singapore, Seoul, Wellington, Taipei, Manila, Mumbai, Bangkok, and Jakarta were also well in the green.
Source: News Formal (newsformal.com)
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