Week 31_Candidate Donald Trump – and the Presidential Campaign (Part 1)_20240729

GLOBAL STOCK MARKETS
Key stock markets continue to adjust amid a sell-off in technology stocks
Capital continues to shift from technology stocks to mid- and small-cap stocks in the context of a robust U.S. economy and the prospect of a near-term interest rate cut. Commodity markets and exchange rates fell, while bond yields increased slightly.
- U.S. stock markets averaged a 1.5% decrease, EU600 rose by 0.2%, and the Nikkei 225 and CSI 300 dropped sharply by 5.2% and 3.7% respectively.
- Commodity index fell by 1.9%; natural gas decreased by 2.9%; metals such as gold, copper, iron, lead, aluminum, and zinc declined by 2-10%.
- The DXY index decreased by 0.05% and the 10-year U.S. Treasury yield increased by 0.01% over the week.
The People’s Bank of China (PBoC) cut interest rates by 10 basis points with a 7-day repo rate, marking the first short-term rate cut in nearly a year due to slowing GDP growth and cooling consumption. The Bank of Canada cut rates for the second time. While other economies weakened, the U.S. economy surprised with 2.8% growth in Q2 compared to a forecast of 2.1%, and the PCE index rose by 2.6% compared to 3.4% in Q1. All eyes are on the September meeting, with the possibility that the Fed will cut interest rates for the first time in four years.

VIETNAM STOCK MARKET
Selling Pressure on Hot Stocks Spreads Across the Market, VN-Index Loses Peak Accumulation Zone
The VN-Index fell by 1.7% amid widespread selling pressure, although liquidity decreased by 18% compared to the previous week.
- Selling pressure on stocks that had previously surged strongly led to cross-selling in some key stocks.
- A broad decline occurred with all 18 sectors losing points. Sectors that had previously performed well, such as Tourism and Entertainment, Media, and Chemicals, saw decreases ranging from 7-12%.
- Foreign investors bought a net $15 million after several consecutive weeks of net selling.
The market turned downward, with investor skepticism creating low-liquidity recovery sessions. Investment opportunities are emerging during the correction phase, and investors may consider gradually buying and increasing their stock holdings if the index falls to the psychological threshold of 1,200 points.
The government has issued Directive No. 71 to address difficulties for citizens and businesses, focusing on promoting growth, controlling inflation, and maintaining macroeconomic stability in July and the third quarter. The Prime Minister has urged ministries and sectors to boost credit growth, use public investment to stimulate private investment, cut regular expenses, enhance exports, develop the domestic market, and improve institutions, laws, mechanisms, and policies.