Saturday, November 24, 2012

Global Market Recover at End Week

Global markets recovered from the previous week’s losses following the release of upbeat data from the US and China.

Furthermore, though talks on Greece’s financial bailout package have yet to be concluded, investors are hoping for a final resolution by next week’s meeting.

Equities markets and riskier currencies had much to gain from this week’s over-all risk-on sentiment while the safe-haven bonds declined.

Local equities pared the previous week’s losses on optimism over the financial sector, buoyed by M&A stories within the Philippine banking industry.

Meanwhile, yields declined and the peso strengthened following the passage of the sin tax bill which increased the country’s chances of reaching an investment grade status. Speculation of another rate cut also helped boost demand for government securities.