After its weak performance last week, the local stock market will now be waiting for the release of the country’s inflation data for cues as to which direction to take.

“Next week, the local market is expected to take cues from various economic data. Primarily, investors are expected to watch out for the Philippines’ May inflation print as this would give clues on the BSP’s [Bangko Sentral ng Pilipinas] policy direction,” said Philstocks Financial Research Manager Japhet Tantiangco. The Philippine Statistics Authority (PSA) will release the consumer price index (CPI) inflation report for May on Thursday, June 5.

He explained that, “A low inflation print, particularly one below the government’s two- to four-percent target may boost market sentiment as this would imply that the BSP can continue with its policy easing.”

Investors are also expected to look towards the S&P Global Philippines manufacturing purchasing managers’ index (PMI) and labor market data for clues on the local economy’s strength while looking out to developments on the global trade front. Tantiangco said a lack of positive developments may continue to weigh on the market.

For 2TradeAsia.com, the reemergence of tariff uncertainty is reordering the macro chessboard and, when paired with still-restrictive monetary conditions—especially in developed markets where central banks have less space to maneuver around this trade policy overhang—could meaningfully swing sentiment and capital flows.

The brokerage lamented that, “Midyear portfolio strategy is seemingly being shaped less by clear catalysts and more by an absence of them. Today’s backdrop is characterized by blurred macro signals, with disinflation underway but also decelerating (even contracting) growth across many markets.”

It pointed out that, “The PSEi continues to struggle sustaining momentum above 6,500—a level that has repeatedly acted as a technical ceiling in recent weeks. With crosscurrents in global trade policy and central bank posture clouding short-run conviction, a more surgical approach to positioning is suggested.

“Favor liquidity, be selective in adding exposure, and lean into names with either fiscal tailwinds or self-funded growth. Until macro visibility improves, treat rallies as chances to recalibrate, not chase.”