Global Markets Topsy-Turvy
Global markets experienced a topsy-turvy week as concerns over the political stalemate in Italy were countered by the US Federal Reserve’s supportive stance on an easy monetary policy.
Equities markets were mostly unchanged, but safe-haven assets and currencies benefited from the flight-to-safety stance investors adopted on worries over Europe’s stability.
The local equities market slid despite reaching the 6,700 mark earlier in the week as investors cashed in on gains following a series of all-time highs and as Energy Development Corporation (EDC) suspended its Bacman power plant following more than a year of repairs.
Meanwhile, local bond yields continued to decline as buying interest was felt for most tenors fuelled by the country’s strong fundamentals. The Philippine peso remained unchanged from previous week’s level amid sideways trading.