Philippine Market Outlook March 28, 2019

MARKET OUTLOOK

Local stocks retreated on Wednesday amid a lack of leads that could boost investor sentiment.

Philippine shares sputtered to the finish line today with a lack of follow-through after opening, as investors awaited news on US-China trade talks.

US and Chinese officials will continue high-level trade talks this week, with US officials set to visit Beijing on Thursday and Friday. Chinese officials will then travel to the US in the following week.

Expect a neutral movement in the next coming days for the reason that there still just aren’t much catalysts yet in order for our market to enter the bull market territory.

Meanwhile, US stocks eased overnight as Treasury bond yields fell again and a prolonged inversion in the yield curve fanned fears of a US economic slowdown.

Benchmark 10-year Treasury yields slid, but came off 15-month lows reached overnight, as investors remained focused on central bank dovishness globally.

The yield curve inverted for the first time since 2007 on Friday and, if the inversion persists, some experts say it could indicate a recession is likely in one to two years.

The inverted yield curve, that's what worries investors. It's definitely a slowing economy indicator, and whether the US goes into a recession or not, nobody really knows. But it will put a pause in the market.

Worries about global growth have risen recently amid weak economic data, and the Federal Reserve last week abandoned projections for any interest rate hikes this year.

The European Central Bank became the latest central bank to delay a planned increase in rates amid rising threats to growth.