Global stocks slightly edged on December 2 as investors booked profits from November’s record-breaking rally and UK’s approval of Pfizer/BioNTech’s vaccine helped capped losses. British medicines regulator cleared the vaccine for use, making the UK the first Western nation to approve one of the many vaccines un the final stages of development and make it available next week. While the US will receive its first shipments from Pfizer by December 15 and Moderna by December 22, according to CNN and Markets Insider.

The approval of the vaccine could be the beginning of a new bull market for equities. The MSCI ACWI gained 12.2% in November, its best monthly performance on record, exceeding April 2009's 11.5% rise.

Philippine Stocks sustained its rally above 7,000 on Wednesday as investors look forward to economic growth recovery and earnings profit in the coming year. Market started the day slightly lower but a pick-up in buying pressure pushed prices higher.

The index tracked global market optimism on soon available COVID-19 vaccine and on the back of the recent Senate's passage of the CREATE bill. We may start to see it move sideways in the coming days and possibly a return to 7,200 especially since the index had yet show overbought signals.

PSEi returns +1.13% week-on-week, +53.15% since 19 March 2020, but still below 2019 levels at YTD return of -9.4%. PSEi closed December 3 at 7,194.13.

Philippine Government Bonds started the month quiet as yields to traded sideways on thin volume. Market saw mixed interest along the curve yesterday though action seems to be end-user driven. Activity remains on the low side with few trades going through.

Not much significant movement on the curve, though on the belly yields shifted higher by about 1 to 3.5bps; driven by some selling earlier on December 1. Market’s preference are still seen for shorter tenors and yields are expected to continue trading range-bound for now.

Meanwhile, inflation outlook for 2021 and 2022 were lowered to 2.7% (from 2.8%) and 2.9% (from 3%), respectively, due to the slower-than expected pickup in domestic activity, the decline in global crude oil prices, and the strengthening of the peso.