Stocks, peso fall on rising US Treasury yields

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Local stocks and the peso started the trading week in the red amid rising US Treasury yields and growing concerns

The 30-company Philippine Stock Exchange index fell 70.57 points, or 1.12 percent, to close at 6,219.70, while the broader all-shares index slipped 28.52 points to settle at 3,354.89.

Markets globally have struggled this month on the prospect that the US Federal Reserve will hike borrowing costs once more before the end of the year as it looks to bring inflation to heel. “Each incremental hike that they have from here just raises the risk that we have a much sharper slowdown in 2024 and perhaps even a recession,” Lori Heinel, at State Street Global Advisors, told Bloomberg Television.

The positive lead from New York filtered through to Asia, with markets enjoying a much-needed rally in the afternoon.Shanghai, Tokyo, Sydney, Seoul, Singapore, Wellington, Mumbai, Bangkok, Taipei and Jakarta also advanced.There is still unease among traders about the Chinese economy, with another small cut in interest rates doing little to allay fears of a painful slowdown.

 

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