May 21, 2026

Bright Morning - 21 May 2026

Bringing the latest market news closer to you.

 

Macroeconomy

  • Escalation feared as Iran's Revolutionary Guard on Wednesday issued a strong statement threatening to extend the Middle East conflict "beyond the region" if the U.S. and Israel resume attacks against Tehran. In the event the aggression is repeated, "the regional war will this time be extended beyond the region".
  • Fitch Ratings expects Philippine banks to face increasing costs as they write off unpaid debts and prepare for losses while navigating an increasingly uncertain economic environment. This comes even as the Bangko Sentral ng Pilipinas (BSP) recently implemented regulatory relief measures that could help reduce the domestic banking industry's non-performing loans.

Fixed Income

  • Philippine bond activity remained lackluster as investors awaited developments in the Middle East. Only a few trades went through, with the bulk in the 3-year space. Yields remained largely unchanged.
  • Oil prices fell overnight and US rates dropped on optimism that a deal between US and Iran will take place soon. Investors also were drawn to rates now sitting at multi year highs.

Equities

  • Global equities rose 0.90% as declining oil prices and easing U.S. Treasury yields lifted risk sentiment amid growing optimism over a potential de-escalation in Middle East tensions. Investors also positioned ahead of the Nasdaq earnings release.
  • The PSEi closed flat with downward bias by 0.06% to 5,893 pts as concerns over stagflation amidst unresolved geopolitical conflict in the Middle East kept optimism stifled.

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 20 May 2026 Previous Day Daily Change
PSEi
Philippine Equity Index		 5,893 5,897 -0.06%
NASDAQ
Tech Focused US Index		 29,298 28,819 1.66%
MSCI ACWI
Global Equity Index		 1,102 1,092 0.90%
S&P500
US Equity Index		 7,433 7,354 1.08%
PH Bond (10-Year) 7.81% 7.79% 2 bps
US Treasury Bond (10-Year)   4.59% 4.67% -8 bps
USD / PHP 61.740 61.750 0.02%

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