<p><strong>GLOBAL: US retail sales dropped 0.6% month-on-month in July, the steepest decrease since May 2025,</strong> as the cushion provided by tax refunds in April and May has dissipated.</p>

<p><strong>Market impact: Following retail sales data, US equities declined, Treasury yields advanced, and the dollar weakened.</strong></p>

<p><strong>While lower-income groups are cutting back, upper-income consumers drove over half of total consumer spending</strong> amid robust stock markets and elevated savings yields.</p>

<p><strong>LOCAL: Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. said the central bank may scale back its rate hikes </strong>following surprisingly weak economic growth.</p>

<p><strong>Market impact: The PSEi advanced following overnight gains on US stocks, while the peso depreciated</strong> amid elevated global oil prices.&nbsp;</p>

<p><strong>Metrobank projects continued rate hikes amid persistent inflation</strong> <strong>before pivoting to monetary policy easing in 2027</strong> due to sluggish economic growth.</p>