Stock market climbs on higher 2nd-quarter corporate earnings

By Jenniffer B. Austria

billion as investors continued to focus on the US Federal Reserve’s upcoming interest rate decision.

of consumer sentiment at a two-year high has stoked talk of more to come.

LOCAL

stocks rose Wednesday, driven by last minute bargain hunting and expectations of higher second-quarter corporate earnings.

The 30-company Philippine Stock Exchange index gained 18.02 points, or 0.27 percent, to close at 4,479.13.

Philstocks Financial Inc. research analyst Claire Alviar said the market took positive cues from Wall Street.

“The sentiment was further boosted as the IMF [International Monetary Fund] upwardly revised its economic growth forecast for the year from 6 percent to 6.2 percent on the back of strong domestic demand,” Alviar said.

Trading value remained thin at P3.8

Meanwhile, Asian equities were mixed Wednesday as the previous day’s Chinainduced rally gave way to cautious trading ahead of a Federal Reserve policy decision, with fresh data reviving the possibility of more rate hikes before the end of the year.

Regional equities surged Tuesday in response to Beijing’s pledges of stimulus, particularly the property sector, after a string of readings showed the postCovid recovery was going off the rails.

But focus has now returned to central banks’ battle to tame inflation, with the Fed tipped to deliver another increase in borrowing costs later in the day.

While the result of the meeting is largely accepted, debate is now centered on whether it will announce another hike later in the year.

There had been hopes that this month would see the end of the tightening cycle but data Tuesday showing a key gauge

Post-meeting comments by bank chief Jerome Powell will be closely followed for an idea about officials’ plans for the rest of the year.

Ann Miletti, at Allspring Global Investments, said figures showing the economy still healthy was weighing on the minds of policymakers, who are determined to bring inflation down to their two-percent goal, from the current three percent.

“They still fear that if they release the pressure too early, things could go back in the opposite direction,” she told Bloomberg Radio. “I just don’t think they’re willing to take that risk.”

CMC Markets analyst Michael Hewson added: “While Powell will try and make the case for further rate hikes, his time would be better spent in making the case for rates remaining higher for longer, and projecting when the (policy board) expected the two percent target to be met.” With AFP