<p><strong>GLOBAL:</strong> US GDP growth eased to 1.5% on a quarter-on-quarter seasonally adjusted annual rate basis. The deceleration reflects drags from volatile categories such as inventory investment, as businesses restocked in previous quarters.</p>

<p><strong>Market impact:</strong> US equities advanced, led by gains in the technology sector. Meanwhile, Treasury yields rose and the dollar weakened amid policy uncertainty at the Federal Reserve (Fed).</p>

<p><strong>Economic growth is expected to recover in the third quarter</strong>, buoyed by solid consumer spending and business investment.</p>

<p><strong>LOCAL: </strong>The country recorded a trade deficit of USD 4.94 billion in June, 12.3% wider year-on-year. Still, the deficit improved on a month-on-month basis as the country benefits from global technology demand.</p>

<p><strong>Market impact:</strong> The PSEi declined as investors assessed signals from the US Fed and developments from the SONA. Meanwhile, the peso weakened after the latest US attacks on Iran.</p>

<p><strong>Net exports will put downward pressure on GDP growth in the second quarter,</strong> with the trade deficit likely to widen further amid the peak import season.</p>