MARKET OUTLOOK
Shares firmed up on Tuesday, tracking global indices’ performance as better retail earnings in the United States boosted sentiment.
Foreign markets were up overnight as British Prime Minister Theresa May secured last minute support from the EU before the crucial Brexit voting today. US market was also up after a better than expected January retail earnings report boosted investor confidence.
The US Commerce department reported that January retail sales rose by 0.2% in January, recovering from the weakness seen in December that was further revised lower to 1.6%, compared to 1.2% as initially reported.
The stronger US retail sales helped sentiment. Overall volume was decent as investors bought back into the market after several days of minor consolidation.
Sentiment across the region was lifted after the European Commission agreed to changes in a Brexit deal, boosting appetite for riskier assets.
Investors reacted to central bank Governor Benjamin E. Diokno’s remarks on the possible easing of the reserve requirement ratio for banks by 1% every quarter for the next four quarters.
The index will continue to range between 7,700 support and 8,000 resistance in the short term. A bearish scenario to test 7,500 and 7,350 support levels will occur if the index fails to stabilize above 7,700.
Risk appetite may be dampened after British lawmakers crushed Prime Minister Theresa May's European Union divorce deal, forcing parliament to decide within days whether to back a no-deal Brexit or seek a last-minute delay.
Lawmakers voted against May's amended Brexit deal by 391 to 242 as her last-minute talks with EU chiefs on Monday to assuage her critics' concerns ultimately proved fruitless.
Parliament will vote later Wednesday on whether to leave the EU with no deal, and if that fails, a further vote on Thursday will decide whether to extend the Brexit deadline.
