The Morning View

News Briefs
July 13, 2023

Local Key Events

• The Philippine Statistics Authority reported that wholesale prices grew by 5.0% in May, a 3-month high.  This brought year-to-date wholesale goods inflation to 5.5%. Increasing food prices as well as beverages and tobacco were the main drivers for the inflation.

  
  

• San Miguel corporation (PSE Ticker: SMC) announced that the Court of Appeals granted its motion for certiorari voiding the decision of the Energy Regulatory Commission that denied the electricity rate hike petition of SMC's subsidiaries, San Miguel Energy Corp. and South Premiere Power Corp.

Local Indices

• Local equities rose following a rally in bank stocks as expectations of a slower US CPI reading, slated for release after markets' close, improved investor sentiment. The PSEi closed at 6,466.85 (+1.07% DoD).

  
  

• Local fixed income marginally fell ahead of US inflation data. On average, yields fell by 0.09 bps, with the 2Y closing at 6.44% (+0.95 bps) and the 10Y closing at 6.67% (-1.79 bps).

  
  

• The Philippine Peso strengthened amid the US dollar weakening ahead of US inflation’s June data release which came out slower. The USD/PHP pair closed at 54.93 (-0.58% DoD).

US Indices

• US equities rose as investors cheered the lower-than-expected June CPI print. The S&P 500 closed at 4,472.16 (+0.74% DoD) and the DJIA closed at 34,347.43 (+0.25% DoD).

  
  US Treasury yields dropped as investors digested the muted increase of the Consumer Price Index in June, which gives cues on Fed's next policy rate move. On average, yields fell by 9.21 bps, with the 2Y closing at 4.75% (-13.10 bps) and the 10Y closing at 3.86% (-11.10 bps).

  
  

• The US dollar weakened as US inflation data came out lower than expected which supports expectations that the Fed is likely near the end of its tightening cycle. The DXY closed at 100.52 (-1.19% DoD).

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Sources: BPI, Business World, PDI, Phil Star, Manila Bulletin, Reuters, Briefing, Bloomberg, CNN, Dow Jones, The Wall Street Journal, CNBC , Market Watch

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