PSE Market Outlook (13 Aug 2024) by 2TradeAsia
Movements would likely be range-bound for now, as most fund managers heed for latest economic data in the US that could influence the Fed’s sequel policy actions.
Movements would likely be range-bound for now, as most fund managers heed for latest economic data in the US that could influence the Fed’s sequel policy actions.
Higher sessions are seen, as expectations build for a rate cut consideration on or before BSP’s policy meeting on 15 August.
Choppy sessions are seen given the month-end portfolio closing, while attention is set whether local gauges could keep its poise above the 6,600 marks.
Participants might focus on the US economy’s 2Q GDP, which came in at a faster clip vs. 1Q (+2.8% vs +1.4%), as well as views on the timing of the Fed’s policy easing cycle.
Eyes are set whether the PSEi would continue its recent strength, or sellers might seize on this move to pocket gains.
Sentiment might take its cue from Wall Street’s ascent, as expectations build for consideration of less-restrictive monetary policies by the Fed for the remainder this year.
Participants will monitor local gauges’ staying power above 6,500, as some players seize on this strength to cash-out.
The market might take its cue from Wall Street’s incline, with the latest jobs data supporting expectations for monetary easing from the Fed.
Market participants would heed to latest inflation for June (vs. May’s 3.9%), with BSP’s outlook pegged at 3.7% to 4.5%.
Attention is set whether local gauges would scale back to 6,500, while waiting for June’s inflation data this Friday.
The market might take its cue from Wall Street’s ascent, with very few macro leads available locally.
Reinforced support from the BSP for the likelihood of August’s rate cut may support sentiment for local equities.
The spotlight is on local monetary authorities’ policy meeting, with consensus skewed for another status quo.
Local equities may continue to advance for the third straight session, as some investors position in select large-caps.
Participants are likely to monitor continuity of yesterday’s recovery, especially for select sectors that led the rise (I.e., property & services).
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