Bright Morning - 03 June 2026

Bringing the latest market news closer to you.

Macroeconomy

• President Trump said he did not care if US-Iran peace talks collapse, responding to reports that Iran may stop negotiations and block the Strait of Hormuz. His remarks came as Israel intensified operations in Lebanon against Hezbollah.
• MUFG warned the Philippine peso could weaken to Php 64.5 per dollar if the Middle East war escalates again, worsened by El Niño and an aggressive US central bank. Its base case sees the peso strengthening to below Pol if conflict eases and the dollar pulls back globally.

Fixed Income

• Peso government bond yields opened little changed as investors remain sidelined ahead of the inflation release on Friday. Activity was centered around the 5-year auction, which was well received at 7.4%. BTr opened its tap facility to issue PHP10bn more 5Y bonds, pressuring yields higher by 1-5bp to end the day.
• US treasury yields were +/- 1bp from unchanged with short maturities lagging. Stronger-than-expected job openings pressured short maturities as rate hike expectations increased.

Equities

• Global equities rose 0.43% as optimism around Al-driven growth supported sentiment, while higher oil prices on renewed uncertainty over a potential U.S.-Iran deal tempered gains.
• The PSEi rebounded yesterday, up 113pts or 1.95% to 5,912.69, as net foreign buying returned at Php 628.73mn. Flows were very concentrated however as index heavyweight ICT was the prime driver at a 6.41% gain, the top performer amongst index names.

Bright Idea: Volatile markets mean idle US dollars in savings may lose potential value. The SLIMTC USD Multi-Class Money Market Global Fund of Funds offers competitive yields compared to standard bank deposits, allowing your cash to grow and available for future investment opportunities.
 

Daily Market Movements