Philippine stocks opened the week in the red amid the lack of catalysts ahead of the long holiday period.
Philstocks Financial Inc. research analyst Claire Alviar said the weakening of the peso against the US dollar in the past few days also weighed on investor sentiment. The peso closed at 56.39 against the greenback Monday. However, figures showing the US economy remains in rude health are keeping a lid on sentiment and raised concerns that the central bank might not be able to bring borrowing costs down as quickly as hoped.
“What matters more is the clear signal that the trajectory of policy rates is downward, not upward, from here.” The remarks come as leaders struggle to reinvigorate growth engines but refuse to unveil any bazooka-like stimulus measures.