Equities retreated 80.29 points yesterday to mirror the global markets’ fall after foreign investors returned their focus to the latest batch of corporate earnings, a day after US Federal Reserves chairperson Jerome Powell remarked that inflation is coming down.
The Philippine Stock Exchange index closed at 6,842.79 down 80.29 points or 1.16 percent.
“Everyone will be awaiting the latest results of the quarterly Morgan Stanley Capital International rebalancing, Regina Capital Development Corp. managing director Luis Limlingan said.
Oil rose for a 3rd straight day on Wednesday as investors took on a risk-on stance after the Fed eased concerns about future interest rate hikes.
Brent crude settled up +1.7 percent, to $85.09/bbl, while US West Texas International crude settled up +1.7 percent, to $78.47.
Asian bourses weaken
Months of slowing price rises fueled hopes the Federal Reserve could soon pause its tightening drive or even cut rates this year, but that optimism was dealt a blow last Friday by data showing the jobs market remains strong.
And key members of the central bank have lined up this week to acknowledge that while there had been progress in the inflation battle, there would be more pain to come before things got easier.
After bank boss Powell on Tuesday reiterated last week’s post-meeting statement that he saw more hikes in the pipeline, several top officials provided further insight Wednesday.
New York Fed chief John Williams said the policy board needed to “attain a sufficiently restrictive stance of policy” and then “maintain that for a few years to make sure we get inflation to two percent,” the bank’s inflation target.