Red ink floods global markets
Inflation rate came out better than expected for February at 3 percent and was able to tame some of the selling.
Despite the decline in volatility in energy and bond markets, the local bourse closed in the red.
Investors continued to monitor the war in Ukraine, all the while worrying about the US Federal Reserve’s bid to hike rates this March, according to Regina Capital Development Corp. managing director Luis Limlingan.
The inflation rate came out better than expected for February at 3 percent and was able to tame some of the selling.
Palladium extended gains to a more than 7-month high, spurred by concerns over supply shortages following harsh sanctions on top-producer Russia, while the Ukraine crisis and soaring inflation lifted demand for safe-haven gold.
Palladium spot prices rose 4.1 percent to $2,779.09. Spot gold was up 0.4 percent at $1,933.31 per ounce while US gold futures settled 0.7 percent higher to $1,935.90.
The Philippine Stock Exchange index closed at 7,342.01 down by 46.08 points or 0.62 percent.
Asian equities and the Euro slumped. Investors were rattled by a news of a fire near a Ukraine nuclear facility following fighting with Russian forces.
The risk-off appetite battered markets across the region, with European bourses set for a weak open as Euro Stoxx 50 futures while German DAX futures shed 2.6 percent and FTSE Futures lost 1.4 percent.
“Markets are worried about nuclear fallout. The risk is that there is a miscalculation or overreaction and the war prolongs,” Vasu Menon, executive director of investment strategy at OCBC Bank, said.
Morgan Stanley Capital International’s broadest index of Asia-Pacific shares ex-Japan tumbled as much as 1.6 percent to 585.5, the lowest level since November 2020, taking the year-to-date losses to 7 percent.
“Markets don’t want a contagion effect and more European countries impacted by the crisis,” Menon said. “If investors are looking to buy, they need to have a strong and long-term risk appetite.”