Vietnam Insight

US-China tensions persist. US stock futures stabilized on Wednesday after the major averages swung sharply in the previous session as investors reacted to mostly positive bank earnings, Federal Reserve comments, and ongoing US-China trade tensions. On Tuesday, the Dow gained 0.44%, while the S&P 500 and Nasdaq Composite slipped 0.16% and 0.76%, respectively. The S&P 500 fluctuated between losses of 1.5% and gains of 0.39% in a choppy session. Market sentiment was pressured after China imposed sanctions on five US units of South Korea’s Hanwha Ocean and President Trump threatened a cooking oil embargo against Beijing. Meanwhile, Fed Chair Powell’s comments reinforced expectations for an October rate cut and hinted at a possible pause in balance sheet runoff. 

Uptrend. VNINDEX closed at 1,761.06 (-4.06 points, -0.23%) with liquidity continuing to improve above the 20-session average. The market had 76 gainers and 256 decliners. The stock groups contributing most significantly to the market's rally were VIC, VHM, and VPB; contributing to the market's decline were CTG, BID, and HPG. Foreign investors returned to strong net selling of 1,404 billion VND.

Trading Strategy: Prioritize a holding strategy and limit new purchases during breakouts. In a positive scenario, if the VN-Index successfully tests and holds the 1,700 level, investors can consider increasing exposure during subsequent pullbacks to ride the upcoming uptrend. If the market retreats to around the 1,600 zone, clearer buying opportunities will emerge — investors may focus allocations on stocks with strong catalysts such as re-rating benefits, robust earnings growth, or valuations that remain lower than the broader market.