The US markets corrected as Oil prices went above the $65 a barrel level and on renewed concerns of home loan defaults. The Dow Jones Industrial Average (DJIA) declined by 42.58 points (-0.33%) overnight to close at 12,919.40. The 13,000 level is the resistance.
In the Philippine stock market, local equities must continue its advance and now break above the 3,325 level, for its current runup to be sustained. If it cannot do so convincingly, the overnight drop in the DJIA and the just published First Quarter 2007, budget deficit figures (PhP 52 billion vs the PhP 45.8 billion target) may be used as an excuse to correct or consolidate.
(The peso was weaker from its firm levels in yesterdays morning trade and closed PhP 47.67 to $ 1.00; after the deficit figures came out).
The PSEi must also hold above the 3,300 level to be able to move out of its wide range trading (3,200/3,220 - 3,300/3,325).
The Japanese Nikkei Index just opened lower by 100 points this morning.
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