Trading thins out ahead of US inflation data

MANILA  -The benchmark Philippine Stock Exchange index (PSEi) edged higher during another quiet session on Monday as investors stayed on the sidelines ahead of US inflation data.

The PSEi rose 0.3 percent, or 18.92 points, to 6,398.64.

“US inflation for the month of June 2023—widely expected by the markets to ease further toward 3 percent from 4 percent in May 2023 and moving closer to the (US Federal Reserve)’s target of 2 percent—is a source of new leads for the US/global/local financial markets,” Michael Ricafort, chief economist at the Rizal Commercial Banking Corp., said in a text message on Tuesday.

If the US inflation hits the Fed’s target of 2 percent later this year, at the earliest, he said this could usher in rate cuts in 2024, which could be matched locally and become a positive market catalyst in the coming months, he added. INQ