Stocks fall due to higher US inflation

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The local stock market fell with all bourses around the globe after the US inflation came out to be higher than expected.

The main index lost 118.95 points or 1.78 percent to close at 6,582.86 as Conglomerates and Banks led the retreat across the board. Volume remained low at 821 million shares worth P5.29 billion as losers swept gainers 137 to 41 with 46 unchanged.“A hotter-than-expected CPI report sent the Philippine along with all major regional indices on a selldown,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He added that, “As for the US, the selling pressure was so strong that the three major index went tumbling to their worst day since Jun 2020, spurring fears that the Fed could potentially hike even higher than 75bps.” Philstocks Financial Assistant Research Manager Claire Alviar said “The local bourse plummeted following the negative cues from the US markets overnight as the US’ August inflation data came in worse than the expectation.”

“Wall Street reacted negatively to the above expectation August inflation data as this may push the Federal Reserve to be more aggressive on monetary tightening. If this happens, the dollar gets stronger while other currencies weaken, including the Philippine peso,” she noted.

 

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 /  🏆 25. in ZA

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Stocks dip prior to US CPI reportThe local stock market dipped while investors wait for the US inflation rate to be announced.
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