Philippine stocks succumbed to profit-taking Tuesday after the peso plunged to a new 18-month low of 58 per US dollar.
“The PSEi also corrected lower after cautious/higher-for-longer signals from most Fed officials recently that partly reduced the odds of Fed rate,” Ricafort said. Meanwhile, markets in Asia and Europe suffered a downturn Tuesday after racking up a series of gains as profit-takers stepped in, while traders were also spooked by a surge in commodity prices.
Still, a number of Fed decision-makers have warned they are not willing to call for a reduction until they are sure higher borrowing costs are doing their job and that inflation is truly under control. “Copper is now on a month-old rally boosted by tight supply with smelters in China decreasing output,” said National Australian Bank’s Rodrigo Catril.