Vietnam Insight

The U.S. and China have temporarily reduced their respective tariffs to 30% and 10% for a 90-day period. US stock futures held steady on Tuesday as investors awaited the latest Consumer Price Index report for clues on how the new tariff regime is influencing inflation. Markets are also looking ahead to upcoming retail sales and producer price data later in the week for further insights into the health of the economy. In Monday’s regular session, stocks posted strong gains, with the Dow climbing 2.81%, the S&P 500 rising 3.26%, and the Nasdaq Composite soaring 4.35%. The rally was fueled by news that the US and China agreed to temporarily reduce their respective tariffs to 30% and 10% for a 90-day period—easing concerns of an extended trade war and a potential recession. Treasury Secretary Scott Bessent indicated plans to meet with Chinese officials in the coming weeks to begin discussions on a broader trade agreement

The short-term recovery continues. VNINDEX closed at 1,283.26 (+15.96 points, +1.26%) with liquidity around the 20-session average. The market had 200 stocks increasing and 111 stocks decreasing, all major industry groups increased notably, including technology, finance and industry. The stocks contributing the most to the market's growth were TCB, VIC, GVR while HPG, MSN and DHG contributed to the market's decline.

Trading Strategy: Long-term investors may consider disbursing into stocks with solid fundamentals that benefit from domestic internal drivers such as steel, banking, securities, and energy. However, the allocation to stock should be reduced as many stocks have already recovered significantly from their bottom levels.

Buy recommendation: MBB