Stock market rises, awaits cues on US inflation

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Local stocks edged higher Monday as investors await cues on US inflation and interest rates. The 30-company Philippine Stock Exchange

Local stocks edged higher Monday as investors await cues on US inflation and interest rates.

Overseas investors anticipate the release of US August inflation rate, producer price index and retail sales. Traders have been in retreat over the past week after a string of readings suggested the economy and labor market remained resilient despite more than a year of monetary tightening. “The data remains indicative of the fact that even if the Fed were to pause in September, they would potentially not close the doors to further tightening,” said Saxo Group’s Redmond Wong.

US Treasury Secretary Janet Yellen looked to calm worries that the long-running rate hikes would cause a recession in the world’s top economy, saying she was optimistic it was on course for a soft landing. The yen has tumbled around 10 percent owing to the BoJ’s refusal to move away from its ultra-loose monetary policy, even as the Fed pushed borrowing costs to a two-decade high.

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