May 20, 2026

Bright Morning - 20 May 2026

Bringing the latest market news closer to you.

 

Macroeconomy

  • Oil prices fell Tuesday after President Trump delayed a planned strike on Iran, following appeals from Qatar, Saudi Arabia, and the United Arab Emirates. The move eased fears of a near-term escalation that could disrupt crude supplies. Trump's decision to hold off calmed energy markets.
  • The World Bank warned that the Philippines' broad economic slowdown in early 2026 could reduce household incomes and raise food prices as Middle East tensions push energy costs higher. It also said prolonged weakness in agriculture and construction could hit poorer Filipinos hardest.

Fixed Income

  • Philippine bond yields were mostly steady early on. After the government rejected all bids for a 7-year bond auction, sentiment improved and prices rose later in the day, though yields still ended higher overall.
  • Oil prices fell overnight but worries that higher energy costs could keep US inflation elevated pushed Treasury yields higher, with long-term bonds under pressure as investors reduced expectations for Federal Reserve rate cuts.

Equities

  • Global equities fell 0.59% amid renewed inflation worries and investors weighed mixed signals on US-Iran negotiations impacting energy-price expectations.
  • The PSEi extended its decline for a third straight day, down 0.75%, closing at 5,896 pts as investor sentiment were weighed down by oil prices rising to USD 110/bbl and the PHP weakening to new highs.

Bright Idea: Locking in yields at current levels (10-year higher than 7% sounds like a good move to add some stability. We recommend clients to consider adding local bond funds to their portfolios at this point.
 

Daily Market Movements

Indicators 19 May 2026 Previous Day Daily Change
PSEi
Philippine Equity Index		 5,897 5,942 -0.75%
NASDAQ
Tech Focused US Index		 28,819 28,994 -0.61%
MSCI ACWI
Global Equity Index		 1,092 1,098 -0.59%
S&P500
US Equity Index		 7,354 7,403 -0.67%
PH Bond (10-Year) 7.79% 7.64% 14 bps
US Treasury Bond (10-Year)   4.67% 4.59% 8 bps
USD / PHP 61.750 61.750 0.00%

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