Global stocks inched up week-on-week as investors focused on efforts to provide fiscal stimulus and positive COVID-19 vaccine news. On Thursday, global stocks ended mixed following an increase in the application for US unemployment benefits, increasing COVID-19 cases and deaths.

In Europe and the UK, after eight months of negotiations and with just three weeks until a deadline on reaching a post-Brexit deal, Brussels and London remained stuck on various issues. Johnson warned last-gasp talks for a Brexit trade deal with the European Union could fail, and urged the public to prepare for a “no deal.” MSCI ACWI returned 0.41% in one week, +11.64% year-to-date.

Philippine Stocks performed slightly lower week-on-week as investors took profit but quickly bounce back on Thursday. Philippines, including the rest of the Asian markets cheered on news that the White

House had put forward a fresh stimulus proposal of more than $900 billion, and the rollout of vaccines in Britain and imminent authorization in the US. Investors are now looking at how well the economy performs this December. We may continue to see the main index move sideways between 6,700 and 7,200 in the coming weeks. PSEi returned -0.55% week-on-week and -8.46% year-to-date.

Philippine Government Bonds fetched higher rates for short-term bonds, driven by the higher-than-anticipated inflation rate in November recorded at 3.3%. This surpassed BSP’s forecast range of 2.4% to 3.2%, and was also higher than the 2.5% in October and 1.3% recorded in the same month last year.

Still, National Treasurer Rosalia de Leon said that rates remained low as the increase in inflation is expected to be only temporary. “Liquidity is very much around and rates remain low as markets see November inflation as one-off with recent typhoons,” she said.

Long-term, BSP is keen to help realize all the characteristics of a New Economy in the post-COVID era and as shown by our strong macroeconomic fundamentals, Philippines will have a strong rebound.