<p><span data-teams="true"><strong>GLOBAL: US jobless claims edged down to a seasonally adjusted 194,000 in the week ended October 17,</strong> the lowest level since September 1969, as companies are reluctant to let people go.&nbsp;</span></p>

<p><span data-teams="true"><strong>Market impact: US equities declined as the technology sector selloff intensified.</strong> Treasury yields fell amid safe-haven demand, while the US dollar extended its decline.&nbsp;</span></p>

<p><span data-teams="true"><strong>Markets expect the Federal Reserve to hold its policy rate steady in October, </strong>then raise it by 25 basis points (bps) in December, as the job market can absorb further hikes.&nbsp;</span></p>

<p><span data-teams="true"><strong>LOCAL: The Bangko Sentral ng Pilipinas (BSP) raised its policy rate by 50 bps to 5.50% at its October meeting,</strong> the highest level in nearly two years, amid worries of second-round inflationary effects.&nbsp;</span></p>

<p><span data-teams="true"><strong>Market impact: The PSEi retreated after the BSP surprised markets with a jumbo hike,</strong> and the peso weakened to a record low amid oil price volatility.&nbsp;</span></p>

<p><span data-teams="true"><strong>With the BSP open to further rate hikes amid high inflation, Metrobank projects another 25-bp rate hike at the BSP’s December meeting,</strong> with the target reverse repurchase rate potentially ending the year at 5.75%.&nbsp;</span></p>