Vietnam Insight

US inflation in May was lower than expected. US stock futures dipped Thursday as investors awaited the latest producer inflation data, following a softer-than-expected consumer inflation report that eased pressure on the Federal Reserve to raise interest rates. On the trade front, US and Chinese negotiators reached a preliminary agreement during talks in London earlier this week, though it still requires formal approval from Presidents Trump and Xi. Meanwhile, Treasury Secretary Scott Bessent indicated the Trump administration may extend the 90-day pause on reciprocal tariffs for nations demonstrating “good faith” in trade negotiations. In corporate news, Oracle shares jumped more than 7% in after-hours trading following stronger-than-expected fiscal Q4 earnings and revenue. During Wednesday’s regular session, the S&P 500 fell 0.27%, the Nasdaq Composite declined 0.5%, and the Dow closed flat.

Resistance around the recent peak. VNINDEX closed at 1,315.20, down 1.03 points or 0.08%, with below-average 20-day liquidity. The market saw 157 advancing stocks and 129 declining stocks, with most shares trading sideways and lacking significant highlights. The stocks contributing most to the market's gains were FPT, HVN, and VTP, while VHM, VCB, and GVR were the biggest contributors to the decline. Foreign investors net sold 178 billion VND, primarily concentrating on HPG and CTG shares.

Trading Strategy: Investors are temporarily holding off on buying stocks that have already seen strong gains, as capital may shift toward stocks trading below their 200-day or 50-day moving averages. For new buying positions, priority can be given to real estate and banking stocks that are trading at low levels with a consolidation base; however, the allocation should remain modest

Trump announced the trade deal is finalized, with the US imposing a 55% tariff on Chinese goods while China levies a 10% tariff