Bright Morning - 31 July 2026

Bringing the latest market news closer to you.

Macroeconomy

• US Central Command said American forces hit dozens of targets across Iran in a two-hour wave of strikes after Iranian missile attacks on U.S. forces in the region were intercepted. Iran's Islamic Revolutionary Guard Corps threatened to "punish the aggressor" on Thursday.
• Asia-Pacific (APAC) banks, including Philippine lenders, are facing a tighter monetary policy environment amid subdued domestic demand due to El Nino. Since late February, the Bangko Sentral ng Pilipinas (BSP) has already raised key borrowing costs twice to 4.75 percent.

Fixed Income

• Peso government bond yields were higher by as much as 13 bps as sentiment soured over middle-east developments and higher USD yields.
• US treasury yields were mixed with 2Y yields lower by 3bp while 30Y yields were higher by 1bp. Softer-than-expected 2Q GDP and dovish Bank of England drove the rally in short maturities.

Equities

• Global equities gained 1.6% as strong technology earnings and renewed confidence that Al investments are generating tangible returns boosted sentiment.
• The PSEi fell 47pts, (-0.74%) yesterday to 6,305 ahead of the PSEi rebalancing implemented by end today wherein Maynilad joins the index and Converge is dropped. Meralco continued to standout, falling another 13%, it is now down 19% since the 2026 SONA.

Bright Ideas

As inflation is seen to moderate and markets anticipate rates to trend lower, don't wait for yields to go down further and consider bond funds and fixed payout products as part of your portfolio.

Daily Market Movements