World Bank Warns of Philippine Market Risks

The World Bank has warned that slower rate cuts by the US Federal Reserve could increase financial market volatility, particularly affecting the Philippines. With the US presidential election approaching, market analysts predict heightened volatility and mixed economic signals, as the October jobs report is expected to show limited growth amid disruptions from recent hurricanes and strikes. US Bank's Rob Haworth anticipates a quarter-point rate cut from the Fed, potentially followed by another in December, which could further impact market conditions. Investment strategist Jimmy Chang noted that rising US Treasury yields are also putting pressure on equities, especially if yields approach 4.5%. Options traders are preparing for significant market movements around the election, with predictions of a 2.1% swing for the S&P 500, and up to 5.3% for macro ETFs. Overall, the uncertainty surrounding both the Fed's decisions and the election results contributes to a climate of increased risk in the markets.