<p><strong>GLOBAL: </strong>US President Donald Trump said he cancelled a large-scale military strike against Iran, following Middle Eastern allies signal that a diplomatic breakthrough was within reach.</p>

<p><strong>Market impact: </strong>Oil prices declined and US stock futures advanced on August 2 amid optimism surrounding US-Iran negotiations. &nbsp;</p>

<p><strong>Negotiations are set to resume Monday. </strong>The proposed framework is expected to include a renewed ceasefire and the reopening of the Strait of Hormuz. &nbsp;</p>

<p><strong>LOCAL: </strong>The Philippine economy likely grew 2.8% year-on-year in the second quarter, a BusinessWorld survey showed, amid geopolitical shocks and weak public and private investment.</p>

<p><strong>Market impact: </strong>The PSEi declined last July 31 amid cautious sentiment, while the peso strengthened following US dollar movements. &nbsp;</p>

<p><strong>Metrobank projects subdued second-quarter GDP growth, </strong>as consumption and investment were toned down.</p>