BSC Radar | 04.08 – 08.08: Trade War – Latest updates from the United States

GLOBAL STOCK MARKET
U.S. stocks retreat as the Fed signals no readiness to cut rates
Positive earnings from Microsoft and Meta failed to sustain the U.S. stock market's rally last week due to the impact of the Fed meeting, high tariffs on trade partners such as India and Brazil, and stalled negotiations with China. The S&P 500 posted three consecutive modest losses after hitting a record high. However, in July, the S&P 500 still rose 2.2%, while the Nasdaq gained 3.7%, marking four consecutive months of gains.
U.S. stock indices declined by an average of 0.8% as of August 1 after several weeks of gains; EU600 -1.9%, Nikkei 225 -2.2%; CSI 300 -1.7%.
The commodity index fell by 1.2%, mainly due to a reversal in metals. Precious metals (gold -1.5%, silver -4.7%), copper -24.5%, tin -6.2%, steel -2.1%. On the other hand, crude oil +6.6% was one of the few commodities that gained.
The DXY index rose sharply by 2.5% to 100, while the U.S. 10-year Treasury yield edged down by 0.01% to 4.38%.
The Fed kept the interest rate unchanged at 4.25%–4.5% during its July meeting, despite pressure from the President. Fed officials want to wait for more data to assess the impact of the trade war on inflation and economic growth before deciding on a rate cut. The decision to maintain the rate faced opposition from two members — the first time since 1993 — highlighting internal division within the Fed. A new tariff order was signed by the President and will take effect on August 7, providing the Fed with a basis to assess the impact and make a decision at the next meeting on September 16–17.
Key events to watch next week include the OPEC meeting; services PMI in the UK, EU, and U.S.; BOE interest rate decision and monetary policy minutes; U.S. jobless claims; Canada’s PMI and unemployment rate; China’s CPI and PPI; and Vietnam’s July macroeconomic indicators.

VIETNAM STOCK MARKET
VN-Index pulls back from record high, liquidity spikes
The index declined by 2.35%, with liquidity surging 33%, including a record trading session of nearly USD 3 billion on July 29. Broad-based profit-taking pressure emerged after many weeks of stock accumulation without any significant correction. Following the sharp sell-off, the VN-Index consolidated above the 1,480 level as liquidity tapered off.
Large-cap stocks dropped sharply, except for a few banks like VPB and SHB, which posted solid gains. Several small- and mid-cap stocks with strong growth stories moved against the broader market trend after the correction.
Gaining sectors narrowed significantly to only 5 out of 18. Personal & Household Goods and Automobiles & Parts rose more than 1%, while Retail dropped over 5%, and Tourism & Leisure, Real Estate fell by 4% or more.
Foreign investors further increased net selling to USD 201 million, compared to USD 57 million in the prior week when domestic ETFs rebalanced their portfolios.
As of August 1, 1,010 out of 1,666 listed stocks across the three exchanges had released Q2 earnings, with net profit growth of 29.7% YoY. Of these, 378 out of 392 HOSE-listed stocks reported a 32.5% YoY increase. All 30 VN30 stocks posted 18.6% growth, and all 27 listed banks achieved 17.5% growth. Overall Q2 market net profit rose 14.5% compared to Q1. HOSE-listed stocks outperformed the broader market, driven by a few names with exceptional YoY profit growth such as VNL, CTG, HHS, and HVN.
With the Q2 earnings season nearly complete and generally positive, the recent price correction has brought the market P/E down to 13.85x — a relatively attractive level for investment.
Investors should consider actively holding the majority of their medium-term portfolio while executing short-term trades on a smaller portion based on market movements amid this phase of divergence and adjustment.