Philippine stocks closed above the 6,500 level on continued bargain hunting while the peso continued to lose value to finish at 57.19 against the US dollar Thursday.
Investors also starting buying stocks as geopolitical risks related to the Israel-Iran tension have stabilized for now, as there has been no new response/retaliation from either side.All sectoral sub-indices ended in green except for the mining and oil index,.Meanwhile, stock markets in Asia and Europe rose Thursday with traders mulling the outlook for US interest rates as Federal Reserve officials questioned the need for a cut anytime soon.
Comments from Fed officials reinforced the view that sticky inflation and a resilient US economy will keep the bank from easing monetary policy anytime soon. Cleveland Fed chief Loretta Mester said Wednesday that she thought borrowing costs were at the right level for now and there was no rush to reduce them just yet.
The remarks came a day after Fed boss Jerome Powell indicated borrowing costs could stay higher for longer following three straight months of above-forecast inflation and jobs creation. Relief that Israel had held off any retaliation for the weekend’s missile attack by Iran — soothing fears of a conflict between the Middle East foes — also weighed on prices.