Market Outlook

Sentiment might glide to US equities’ ascent, as slower inflation in April support hopes for the Fed’s rate cut.

The local bourse closed higher at 6608.36.

Sessions might glide to Wall Street’s incline, given indications from Fed chief Powell on interest rates.

Sessions might move sideways, possibly with an upward bias, as investors sift through select shares with attractive valuation.

The week’s attention would be on the local central bank’s policy meeting, specifically on officials’ outlook on interest rates given the latest April inflation & 1Q24 GDP data.

The PSEi retreated by -1.57% w-o-w to close at 6,511.93.

The local bourse fell by 116.72 points and continued to move sideways after a rejection from MA100.

Slower year-on-year (YoY) GDP growth comparison is expected, with high base effect for 1Q23.

After April’s latest CPI, participants will be heeding for the release of 1Q24 GDP data (coming from 1Q23 GDP of +6.4%, 4Q23 GDP of +5.6%).

The local bourse was rejected below 100-MA after it tried to break it last Monday.

April’s inflation print (3.8% vs. March’s 3.7%), would bring the four-month average to 3.425%, compared to prior year’s 7.875%.

Expect choppy sessions, ahead of April’s inflation announcement as well as latest headlines in the Middle East ceasefire talks.

Sentiment might take its cue from Wall Street’s incline Friday (DJIA +1.18%, Nasdaq Comp. +2%), as Fed rate cut prospect resurfaces.

The PSEi inched lower by -0.23% w-o-w to close at 6,615.5.

Higher but volatile sessions are seen with end-April’s portfolio repositioning.