Local stocks rebounded Thursday from four days of decline, as the benchmark index tracked the positive performance of US and Asian markets.
“Whether today’s rise in the PSEi is a mere technical rebound or the beginning of sustained recovery will depend on Fed Chair Jerome Powell’s remarks at the Jackson Hole symposium,” Colet said. Traders have spent most of August fretting that the Federal Reserve will be forced to tighten monetary policy further owing to a string of reports pointing to a resilient US economy and jobs market.
The picture in the eurozone was equally poor, with the purchasing managers’ indexes for manufacturing and services both contracting. Redmond Wong, at Saxo, said: “This may be another reason for Powell to stay away from committing to further rate hikes but continue to highlight a data-dependent approach.”And Krishna Guha of Evercore ISI added: “The recent surge in bond yields has pushed up mortgage and corporate borrowing rates, contributed to the fall in stock prices, and generated upward pressures on the dollar.