<p><span data-teams="true"><strong>GLOBAL: Cleveland Federal Reserve (Fed) President Beth Hammack said the central bank faces hurdles in bringing inflation down</strong>, favoring a gradual approach to rate hikes.</span></p>

<p><span data-teams="true"><strong>Market impact:&nbsp;US equities declined amid a technology sector sell-off</strong>, while Treasury yields fell and the dollar strengthened due to safe-haven demand.</span></p>

<p><span data-teams="true"><strong>Markets are pricing in one more Fed rate hike by the end of the year</strong> as inflation remains above the 2% target.&nbsp;</span></p>

<p><span data-teams="true"><strong>LOCAL: Headline inflation rose to 7.8% year-on-year in October, the highest since February 2023</strong>,&nbsp;due to transport fare increases that took effect in late September alongside higher electricity costs.</span></p>

<p><span data-teams="true"><strong>Market impact:&nbsp;The PSEi jumped due to improved risk sentiment, while the USDPHP returned to the 62 level</strong> amid broad dollar weakness following the US midterm elections.</span></p>

<p><span data-teams="true"><strong>Inflation is expected to remain elevated, as the super El Niño poses a risk to agricultural output.</strong> Transport fare and minimum wage hikes, along with peso depreciation, are also key upside risks.</span></p>