Bright Morning - 02 September 2026

Bringing the latest market news closer to you.

Macroeconomy

• Eurozone inflation rose to 3.3% in August, driven by higher energy prices linked to the Iran conflict. Markets are now fully pricing a 25 bp ECB rate hike in September, although easing core and services inflation suggest underlying price pressures remain relatively contained.
• The peso depreciated to an all-time low of P62.4/USD despite the BSP's hawkish rate increase, reflecting persistent external pressures from geopolitical tensions and higher import costs, while reinforcing calls for clearer policy communication to anchor market expectations.

Fixed Income

• The local bond market was mostly quiet, though yields in the 3- to 5-year sector rose by 7.5-12.5 bps amid selling pressure. Short-term rates also moved higher, with Treasury bill yields increasing by 7-9 bps, reflecting market adjustments following the recent rate hike.
• Overnight, oil prices jumped around 4% as geopolitical tensions in the Middle East escalated. The move heightened inflation concerns and pushed global bond yields higher, with investors becoming more cautious on the outlook for interest rate cuts.

Equities

• Global equities started September on a weak footing, declining 0.60% as rising crude oil prices and higher global bond yields weighed on risk sentiment amid escalating tensions in the Middle East.
• Philippine equities staged a strong rebound, with the PSEi gaining 2.31% to 6,094 pts as bargain-hunting emerged following recent market weakness. ICT and banks led the advance, helping offset concerns over continued peso depreciation.

Daily Market Movements