Local shares opened the week in the red ahead of the US Federal Open Market Committee meeting slated in the middle of the week.
“Funds are also gearing up for another economic heavy week with more company earnings coming in as well,” Regina Capital Development Corp. head of sales Luis Limlingan said. Mining and oil dropped 1.18 percent, followed by property, services and holding firms, which decreased by 0.90 percent,0.84 percent and 0.51 percent, respectively.Meanwhile, Asian markets rallied Monday, tracking a surge on Wall Street after data showing US inflation slowed further in June stoked hopes the Federal Reserve will cut interest rates.
All three main indexes in New York jumped more than one percent Friday after the Fed’s preferred gauge of inflation, the personal consumption expenditures index, slowed to 2.5 percent last month. The bank is due to make an announcement Wednesday, ahead of the release of the closely watched non-farm payrolls report Friday.
“While an upside beat might reduce the chances of one of those Fed rate cuts baked into the 2024 cake. This could strengthen the US dollar and spoil everyone’s rate-cut party.”Tokyo piled on more than two percent after eight days of losses, while Hong Kong gained more than one percent.London and Frankfurt rose but Paris edged down.