Vietnam Insight

Softer US jobs data trimmed rate-hike bets. US stock futures edged higher on Monday, extending gains from the previous session as softer US jobs data reduced pressure on the Federal Reserve to continue raising interest rates. Nasdaq 100 futures gained 0.3%, while Dow and S&P 500 futures advanced around 0.1%. On Friday, Wall Street rallied after data showed US employers added fewer jobs in September than expected, while wage growth also moderated. Markets are now pricing in nearly an 80% probability that the Fed will leave policy unchanged this month. Still, traders remained focused on elevated Treasury yields, with the 10-year yield hovering near its highest level since 2002. Investors now await a fresh batch of economic data this week for further clues, including the ISM services activity report, minutes from the Fed's September meeting and the University of Michigan's consumer sentiment reading. Earnings are also due from Constellation Brands, Levi Strauss, PepsiCo, Delta Air Lines and other major companies.

Shorterm decrease. The VN-Index closed at 1,737.71 points, down 11.59 points (-0.66%). During the session, the index fell to as low as 1,728.36 points, before recovering above the reference level in early afternoon trading, but then declined again toward the close. Market breadth remained weak, with 436 decliners and 259 gainers. Foreign investors posted heavy net selling of more than VND 3,200 billion, mainly concentrated in HDB and PNJ.

Trading Strategy: Prioritize defensive stocks with low beta, strong cash flows, high dividend yields, and low leverage amid the high-interest-rate environment. Insurance and utilities could be considered. In the short term, the market may face further downside, so short-term traders should prioritize staying on the sidelines.

Buy Recommendation: REE

Current hodling portfolio; Watchlist: REE, TCH BVH, GAS; High risk stocks to avoid: PNJ NVL