Local, world news in briefs 01 Oct

Local, world news in briefs 01 Oct

Morning Brief – 01 Oct. 2020

Currencies

U.S. Dollar Index little changed at $93.84

Yen up 0.21% to 105.4400 per US$

Euro down 0.19% to 1.1722

USD/PHP 48.495

(Range 48.50-48.38)

US Markets

S&P 500 up 0.8% to 3,363.00

Dow Jones Industrial Average up 1.2% to 27,781.70

Nasdaq up 0.7% to 11,167.51

Commodities

Dubai Crude -4.1% to $39.31/bbl

WTI oil -0.47% to $40.03

Gold spot down 0.2% to $1,890.00

Copper +1.43% to $6,680/mt

Fixed Income

U.S. 10Y yield widened 3.5bps to 0.6840%

German 10-year bond yield rose 2.3 bps to -0.522%

PH : USD Fixed Income

ROP30:   1.87%

ROP31:    2.06%

PH 5Y CDS: 55.95

World News

After a last-ditch effort on a fiscal stimulus compromise, U.S. Treasury Secretary Steven Mnuchin said there’s still no agreement, while House Speaker Nancy Pelosi said both sides see areas that need more clarification

President Donald Trump risks repelling key voters after bringing his chaotic, confrontational style directly to the debate stage in his first face-off with Democrat Joe Biden

Congressional panels, one controlled by Democrats and the other by Republicans, are recommending that the U.S. re-examine all aspects of its relationship with China, including investment, trade, defense and intelligence capabilities

Tens of thousands of job cuts announced by blue-chip companies are a warning sign for the world’s recovery ahead of this week’s U.S. jobs report for September

New York City’s seven- day rolling average of positive coronavirus tests rose to 1.46% as cases continued to climb in parts of Brooklyn and Queens; meanwhile, the U.K. government is warning that the virus outbreak is not under control

Philippine News

Metro Manila mayors eyeing more relaxed quarantine in November. “Olivarez eyes MGCQ for Metro Manila next month”

Gov’t asks for fresh P540 billion loan from Bangko Sentral

The national government’s outstanding debt as of end-August has already reached P9.6 trillion, surging by 21.1 percent from P7.94 trillion a year ago.

Peso Outlook

USD/PHP  at 48.495 signals consolidation within the 48.30/48.60 levels in the near-term. A close above the 48.70 levels could see further tests towards the 49.00 levels. Watch this space.

Equities Outlook

PSEI at 5,864.23 highlights further consolidation. Continue to see the market to range between the 5,700-6,000 levels in the near-term.

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