Local stocks tumble on slower Q1 growth

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Philippine stocks tumbled on Thursday as investors were disappointed by the slower first quarter economic growth.

It was also below the government’s target range of 6 percent to 7 percent for 2024 and the 5.9 percent expected by the market. Meanwhile, equity traders struggled to get a recent rally back on course Thursday following a tepid lead from Wall Street, but record performance in Europe highlighted optimism that central banks were on course to cut interest rates. With AFP

The Riksbank decision was announced nearly two months after the Swiss National Bank became the first major Western central bank to move since a global tightening campaign to fight inflation fueled by covid recovery and the Ukraine war. Still, a healthy run of corporate results, soothing comments from Fed boss Jerome Powell over the prospect of a rate hike and a sharp miss on US jobs last month have put a skip in traders’ step in the past week.“Despite the lack of good news on inflation, there is a silver lining for patient investors,” said Mark Hackett of Nationwide.

Hong Kong resumed its upward momentum, having fallen for two days after a 10-day winning streak, while Shanghai was also in positive territory.

 

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