BOURSES DEAL WITH DELTA STRAIN
Philippine Stock Exchange index closed at 6,587.20, down 106.63 points or 1.59 percent after moving on a range of 6,510.43 to 6665.54
Shares were sold again ahead of the holiday and as investors keep vigilant on the Delta variant spreading globally and more key data are set for release.
Investors in the West are tuned in to the release of the housing starts data on Tuesday and the Markit Purchasing Managers Index by the end of the week.
US stock futures eked out small losses. Sentiment from last week also carried over as shares tumbled last Friday as strong retail sales data and earnings releases were overturned by inflation concerns.
The Philippine Stock Exchange index closed at 6,587.20, down 106.63 points or 1.59 percent after moving on a range of 6,510.43 to 6665.54. Trade volume reached 116,118 shares valued at P6.399 billion.
Inflation, virus raise worry
Asian markets sank Monday following big losses on Wall Street as inflation worries and the spreading Delta virus variant fuel worries about the global recovery, while oil prices also sank after top producers reached a deal to hike output.
Hong Kong was the worst hit after the United States warned businesses about the “growing risks” of operating in the city as China tightens its grip, raising concerns about its future as a financial hub.
With vaccines being rolled out around the world and some governments easing lockdowns, equities enjoyed a healthy first half of the year, with many hitting records or multi-year highs as traders bet on a strong rebound from last year’s pandemic-induced collapse.
The frightening spread of the highly transmissible Delta variant has thrown a spanner in the works as leaders in several countries — particularly those with slow inoculation programs — reimpose lockdowns and other containment measures.
Vital jabs
Even in parts of the world where most people have been jabbed and reopenings continue, such as England, there is a growing concern about a surge in new cases.
That has raised worries that the expected recovery will not be as strong as first hoped.
Meanwhile, a spike in inflation has rekindled speculation that the Federal Reserve and other central banks could be forced to wind down their ultra-loose monetary policies and raise interest rates sooner than expected.