THE MORNING VIEW

THE MORNING VIEW


News Briefs
December 3, 2020
 
Local Key Events
  • The Bureau of the Treasury will launch a dollar bond issuance aimed to raise funds that will be used to support the Philippine economy impacted by the COVID-19 pandemic and the recent typhoons. The offering will consist of 10.5-year and 20-year US Dollar-denominated bonds with a carry yield of around 100 basis points above the 10-year US Treasury benchmark.
  • Globe Telecom, Inc. (PSE Ticker: GLO) built 911 new cell sites in 2H20, and expects to finish 600 more before year-end.  This statement was released as Palace called for telcos to improve services. Likewise, PLDT Inc (PSE Ticker: TEL) committed to rolling out 2,000 additional cell sites in 2021.
Local Indices
  • Local equities rose, tracking gains in the US, on hopes of the passage of the US fiscal stimulus package. A bipartisan group of lawmakers proposed a $908 billion stimulus program. The PSEi closed at 7,080.62 (+1.01% DoD)
  • Local fixed income yields were mixed ahead of the inflation data release. Currently, consensus expectations is 2.6% while the BSP is forecasting 2.4-3.2%. The market movement was also driven by the Bureau of the Treasury’s reissued three-year bonds yesterday. On average, yields rose 0.53 bps DoD as the long-end and the belly increased by 1.40 bps and 0.58 bps DoD, respectively. Meanwhile, the short-end fell 0.18 bps DoD.

  • The Philippine peso was flat as investors awaited for further market developments after President-elect Joe Biden asked the US Congress to pass the stalled COVID-19 stimulus package. The USD/PHP pair closed at 48.05 (0.00%). 

US and Europe Indices
  • US equities gained as investors focused on the new rounds of talks for the stimulus package . The DJIA closed at 29,883.79 (+0.20% DoD) while the S&P 500 closed at 3,669.01 (+0.18% DoD).
  • European equities slightly rose on the back of positive sentiment following the better-than-expected economic data from Germany. The German retail sales rose 2.2% month-on-month in October, better than the -2.2% reported last September. This is also higher than the consensus expectations of 1.2%. The MSCI Europe closed at 129.98  (+0.02% DoD).
  • US Treasury yields were mixed but rose on average as market participants hoped for the fresh stimulus package from the US government . On average, US Treasury yields rose by 0.26 , with the 2Y ending at 0.1584% (-0.78 bps) and the 10Y closing at 0.9360% (+1.00 bp).
  • The U.S. Dollar continued to weaken amid optimism for a potential US stimulus package and vaccine progress. The DXY closed at 91.1180 (-0.214%).
Asia Pacific Indices
  • Asian equities rose following the gains in the US markets overnight due to investors’ optimism from the $908 billion fiscal stimulus plan in the US. The MSCI APxJ closed at 631.10 (+0.27% DoD).
Sources: BPI, Business World, PDI, Phil Star, Manila Bulletin, Reuters, Briefing, Bloomberg, CNN, Dow Jones, The Wall Street Journal, CNBC , Market Watch
 

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