The stock market rose Tuesday in mixed trading, with investors treading uneasily as they await the conclusion of a crucial Federal Reserve meeting this week.
The Philippine Stock Exchange Index added 13.05 points, or 0.2 percent, to 7,922.04 on a value turnover of nearly P8 billion. Losers, however, edged gainers, 100 to 96, with 54 issues unchanged.
Conglomerate GT Capital Holdings Inc. of the Ty Group advanced 3.5 percent to P880, while unit Metropolitan Bank & Trust Co., the biggest lender in terms of assets, gained 1.4 percent to P72.60.
International Container Terminal Services Inc., the biggest operator and owned by tycoon Enrique Razon Jr., climbed 2.1 percent to P147.80, while Globe Telecom Inc., the second-largest telecommunications firm, rose 1.8 percent to P2,200.
Meanwhile, Asian markets mostly rose Tuesday but gains were limited.
While geopolitical tensions and the China-US trade war continue to make waves, the key focus for now is what the US central bank plans to do with monetary policy as the tariff stand-off shows signs of impacting the world’s top economy.
The latest weak data saw manufacturing activity in New York state plunge into contraction this month and hit its lowest level since late 2016, reflecting steep drop-offs in new orders, backlogs and employment.
Observers pointed out the reading coincided with US President Donald Trump’s threat to impose tariffs on Mexico over immigration policy, which he has since withdrawn, but added that the reaction suggests how manufacturers would react to further action against China.
There has been increasing talk that the Fed will cut borrowing costs for the first time in more than a decade, although the expectation is for a move later on. The shift to a more dovish tone from the bank has been a key support for global markets in the face of the trade uncertainty.
Still, Cesar Perez Ruiz, chief investment officer at Pictet Wealth Management, warned: “If market expectations for cuts are not met, we could see a jump in market volatility. Unless US-China trade talks completely derail, we expect a first Fed rate cut to come no earlier than September, in contrast to what markets have priced in.”
Hong Kong jumped one percent, Sydney rose 0.6 percent, Shanghai edged 0.1 percent higher and Singapore put on one percent while Seoul added 0.4 percent. Wellington, Taipei, Mumbai and Jakarta also climbed, but Tokyo ended 0.7 percent lower as it was hit by a strengthening yen.
Investors are also gearing up for next week’s high-stakes G20 summit, where Trump is penciled in to meet his Chinese counterpart Xi Jinping on the sidelines to discuss their trade war.
Officials on both sides have played down the likelihood of a deal being struck in Osaka but experts point out that some sort of breakthrough is in the interests of Beijing and Washington as their economies stutter.
“The trade war is starting to ebb away at US data,” said OANDA senior market analyst Edward Moya. “Uncertainty on the trade front remains high and markets will remain undecided until we see the events at the G20 summit in Japan unfold.” With AFP
