The Philippine Stock Exchange index slipped 6.93 points, or 0.12 percent, to close at 6,041.04, while the broader all-shares index lost 2.64 points, or 0.08 percent, to settle at 3,271.66.
Rizal Commercial Banking Corp. chief economic Michael Ricafort said the Asian Development Bank’s downward revision of its Philippine gross domestic product growth estimate for 2023 to 5.7 percent from 6 percent also contributed to the market’s negative sentiment. The optimism that the Fed will be able to cut borrowing costs next year has evaporated over the summer as the US economy shows few signs of weakness and the labor market remains robust.
Policymakers are aiming to keep the United States on what Chicago Fed chief Austan Goolsbee called the “golden path”, attempting to temper inflation while averting a surge in unemployment and a major economic slowdown. Hong Kong, Tokyo, Shanghai, Sydney, Mumbai, Singapore, Wellington, Manila, Taipei and Bangkok all dropped.
Still, oil has retreated more than one percent over the past two days as the stronger dollar makes it expensive for buyers using other currencies.