Global markets are taking a step back—not because of panic, but caution. Investors are reducing risk as they navigate uncertainty around inflation, interest rates, and global tensions.
Brokerage firm 2TradeAsia describes the current mood as an “unwinding” phase, where money is moving out of riskier growth stocks and into safer assets.
This shift looks more like investors locking in gains than a sign of deeper economic trouble.
In the Philippines, the picture is mixed but stable.
Inflation has edged up and economic growth has slowed slightly, which limits how aggressively policymakers can cut interest rates. Still, local stocks are reasonably priced, trading at about 11 times expected earnings.
According to 2TradeAsia, the country’s rate-cutting cycle is likely nearing its end — not reversing. For investors, this means sticking with defensive stocks and strong, well-run companies. The local market is expected to find support near 6,300 and face resistance around 6,500.
The peso’s recent strength is another encouraging sign. USD weakened to P58.585, its lowest level in more than six weeks, as better local data lifted confidence.
Stronger job numbers, improving factory output, and low inflation of around 2 percent all point to a healthier economic backdrop. The country’s foreign reserves, now at USD112.5 billion, also help protect the peso from sharp swings.
RCBC chief economist Michael Ricafort said the peso is being supported by steady inflows from remittances and BPOs, along with expectations that U.S. interest rates could be cut in 2026. For now, the peso is likely to trade between P58.00 and P59.00, with global news and central bank signals guiding the market.
