Philippines stocks may gather when they reopen on Friday, as sentiment may be boosted as the United States and China eventually struck a deal to restore tariff ceasefire between the two countries.
Stock markets have been volatile this week as the U.S. and China started a brand new trade negotiation in London on Monday, with the Philippine Stock Exchange Index (PSEI) starting this week at a level of 6,400, but fell to the 6,300 range over the next two days, with stocks mostly investors, as investors talk and negotiations between the world’s two major economies.
On Wednesday, PSEI rose 0.53% or 33.65 points to end with a score of 6,381.32, while the broad all-stock index rose 0.47% or 17.69 points to 3,776.19.
Philippine financial markets closed on Independence Day on Thursday.
“The PSEI movement is driven by geopolitical forces related to the global trade war,” said Cristina S. Ulang, head of research at the No. 1 metropolitan investment firm.
Ms. Ulang said local deals could continue to climb when local deals resume on Friday after the U.S. and China reached an agreement to get their trade armistice back on track.
Ms. Wulang said: “As announced last night by US President Donald J. Trump, we see the latest PSEI rally for the ‘complete’ deal.”
Global stocks fell Thursday, as investors planned a benign U.S. inflation report, and a fragile trade ceasefire between Washington and Beijing, Reuters reported.
The focus in financial markets this week has been the U.S.-China trade negotiations ultimately lead to a framework agreement that will remove Chinese export restrictions on rare earth minerals and allow Chinese students to enter U.S. universities.
“We did a lot with China. We are very happy with it.” The market’s response to them is protected, waiting for Fuller’s specific details and staying alert.
In the Asia Pacific region, the broadest index tracking stocks that exclude Japan fell 0.2%, while Japan’s Nikkei fell 0.5%. In the last session, Chinese and Hong Kong stocks were also suspended after contacting several weeks of highs.
Mr. Trump’s tariffs have swept global markets this year, prompting hordes of investors to exit U.S. assets, especially the dollar, as they fear rising prices and slower economic growth.
Meanwhile, Rizal Commercial Banking Corp. chief economist Michael L. Ricafort said investors could also respond to improper complaints from Philippine vice president Sara Duterte-Carpio. “Although local political noise may also be a factor after recent developments, although the moves of the improper each may be seen as uncertain as the vice president.”
Mr. Ricafort sets the secondary support for PSEI at 6,290-6,300 and the resistance is 6,500. – RMD Ochave and Reuters
