The peso moved sideways on the first trading day of the week as financial markets welcomed the improving employment situation in the United States and as the Philippine Stock Exchange Index corrected from Friday’s historic high.
Part rock concert, part investment workshop, the annual gathering of Berkshire Hathaway shareholders is an odd mix.
The peso inched up on Wednesday as reports of an increase in sales of residential properties and corporate earnings in the United States boosted sentiment of investors on the global economy.
The peso fell on Thursday amid uncertainties over the ability of the United States to significantly boost its economy over the short term.
The US dollar took a hit against most major currencies Friday after a disappointing jobs report suggested the Federal Reserve’s easy-money policies may not be reversed anytime soon.
A streak of robust job growth came to a halt in March, signaling that U.S. employers may have grown cautious in a fragile economy.
U.S. consumers earned more and spent more in February, helped by a stronger job market that has offset some of the drag from higher taxes. The Commerce Department said Friday that consumer spending rose 0.7 percent in February from January. It was the biggest gain in five months and followed a 0.4 percent rise in January, which was double the initial estimate.
The effects of the $85 billion in US government spending cuts scheduled to begin Friday will be felt across oceans and could further hurt recession-hit European nations and burden an economically slowing China, shrinking the market for countries that depend on selling things to the United States.
The peso inched up on Wednesday following reports of improving consumer sentiment and house prices in the United States.
Stock markets in Asia moved higher Thursday on the heels of positive corporate news and resilience in U.S. consumer spending. Japan’s Nikkei 225 index rose 0.6 percent to 11,313.68. The Tokyo market shrugged off data showing the Japanese economy shrank for a third straight quarter in the last three months of 2012, as investors expected the yen’s recent weakness will boost company earnings.
The peso rose on the first trading day of the week as the market responded favorably to reports of an increase in payrolls in the United States.
An unexpected contraction in the U.S. economy at the end of 2012 sent world stock markets into retreat Thursday.
