<p><strong>GLOBAL: Hezbollah has formally rejected the US-brokered ceasefire plan aimed at ending hostilities between Israel and Lebanon.</strong> Hezbollah demanded the total withdrawal of Israeli forces from Lebanese territory and cessation hostilities.</p>

<p><strong>Market impact: Oil prices and Treasury yields declined as US-Iran peace hopes fizzled. Meanwhile, US stocks rose as investors rotated out of the AI trade, </strong>as Broadcom's earnings miss sparked tech de-risking.</p>

<p><strong>Oil prices will likely continue to settle close to USD 100/barrel in the near term</strong> as the conflict continues to be fragile amid on-the-ground volatility.</p>

<p><strong>LOCAL: Data from the Bangko Sentral ng Pilipinas revealed that foreign portfolio investments logged a net outflow of USD 1.601 billion in April.</strong> The decline is due to external shocks, with the Middle East conflict disrupting investor appetite.</p>

<p><strong>Market impact: PH stocks declined while bond yields rose in anticipation of May inflation data. </strong>Meanwhile, the peso advanced on BSP rate hike hopes.</p>

<p><strong>Hot money is expected to remain highly volatile,</strong> with high inflation and interest rates weighing down investor sentiment.&nbsp;</p>