Local stocks cower on the side as US, China spar

Local stocks are seen continuing to trade with caution this week as global markets grapple with the escalating US-China trade tension.

The main-share Philippine Stock Exchange index (PSEi) shed 34.17 points to close at 7,945.66 last Friday.

Today, local markets are on holiday break as the nation observes Araw ng Kagitingan (Day of Valor). Trading will resume tomorrow.

“Chart-wise, the week’s close at 7,945.66 continues to signal [that] further weakness toward the 7,500 to 7,800 levels is to be expected in the near term,” BDO Unibank chief strategist Jonathan Ravelas said.

Ravelas sees the PSEi’s immediate support and resistance levels at 7,800 and 8,100, respectively.

In the last few days, the PSEi has struggled to stay above the 8,000 mark.

Ravelas took note of the world market’s growing skittishness over the US and China trade impasse. Based on the latest development, US President Donald Trump instructed trade officials to consider $100 billion in additional tariffs against China.

The closely-watched Dow Jones Industrial Average tumbled by 572.46 points or 2.34 percent to close at 23,932.76 on Friday following Trump’s order of further trade tariff reviews.