🟩STOCK MARKET FALLS AFTER FED DELIVERS “TRIPLE STOP” MESSAGE
🟩POSTED ON SEPTEMBER 21, 2023
🟩IBD Newspaper lowered the US stock market outlook to red (Market in a downtrend) after the negative reaction to the Fed’s message.
Chairman Powell is showing that there will be another interest rate hike in 2023 and the possibility of keeping interest rates high in 2024 longer than the market’s expectation.
Not only 'How High (how much), the market is disappointed with “How Long (how long interest rates are high)”.
The decline of the Vietnamese stock market is in line with the general trend of the Asian and European markets after the Fed’s press conference.
🟩STOCK MARKET MOVEMENTS TODAY
🟩What is happening is reminiscent of September 2022.
The Fed raised interest rates by another 0.75% to bring the Fed Fund Rate (federal interest rate) to the range of 3.75%-4%, and issued a strong message in raising interest rates higher, even 'accepting the pain of economic recession'.
🟩The storm of the financial market last year originated from Powell's message at the Jackson Holes Conference on August 25, 2022.
🟩The global and Vietnamese stock markets recovered after August 22, 2023, as Powell chose a gentle approach at the Jackson Hole conference.
🟩But this recovery was stopped by the inflation expectations returning as oil prices approached the $90/barrel range, and now Powell’s “Hawkish Pause” message in the FOMC meeting on September 20.
🟩The VN-Index fell -1.09%, the VN30 fell -1.25% and the HNX-Index fell -1.16%.
🟩The number of stocks falling was nearly 2.5 times the number of stocks falling on the HOSE floor. Liquidity was higher than the previous session and the VN-Index almost closed at the lowest bottom of the session.
This is a typical price action of the sellers.
🟩After the session on Wednesday, almost all the results were taken away.
The bull was quickly beaten back by the bear and the VN-Index is once again preparing to test the important MA50 day support.
🟩While the stock market reacted negatively, the reactions on the bond market were quite calm.
The 10-year government bond yield of Vietnam only increased by 17 basis points, to 2.711%.
Almost the bond yield in September was flat, supporting the recovery of the Vietnamese stock market.
🟩The USD/VND exchange rate today rose again 55 dong on the free market, to 24,350.
In the macro report on September 20, KBSV Securities Company forecasted that the USD/VND exchange rate on the official market could reach 24,550.
However, KBSV said that the SBV will not intervene in the short term as inflation is still under control and the economy continues to be supported by monetary policy.
🟩Back to the stock market, foreign investors sold more than 350 billion today.
Interest rate-sensitive sectors such as securities and residential real estate fell sharply.
SSI stock fell more than -4.66%. VIC fell -2.43%.
This is one of the stocks that dragged the market down sharply.
🟩Steel stocks and basic materials performed a little better.
According to Fireant’s data, the basic materials group rose slightly +0.26%, along with health +0.36% and telecommunications +0.06% as the outstanding sectors.
🟩HOW DO TRADERS ACT? - BUY SIGNAL 🪻LTG.
🟩Today was a strong distribution day of the VN-Index, as the distribution nature occurred right from the beginning of the session, despite the fact that it was the derivative expiration day.
🔴This is the fifth distribution day of this index.
🟩POSTED ON SEPTEMBER 21, 2023
🟩IBD Newspaper lowered the US stock market outlook to red (Market in a downtrend) after the negative reaction to the Fed’s message.
Chairman Powell is showing that there will be another interest rate hike in 2023 and the possibility of keeping interest rates high in 2024 longer than the market’s expectation.
Not only 'How High (how much), the market is disappointed with “How Long (how long interest rates are high)”.
The decline of the Vietnamese stock market is in line with the general trend of the Asian and European markets after the Fed’s press conference.
🟩STOCK MARKET MOVEMENTS TODAY
🟩What is happening is reminiscent of September 2022.
The Fed raised interest rates by another 0.75% to bring the Fed Fund Rate (federal interest rate) to the range of 3.75%-4%, and issued a strong message in raising interest rates higher, even 'accepting the pain of economic recession'.
🟩The storm of the financial market last year originated from Powell's message at the Jackson Holes Conference on August 25, 2022.
🟩The global and Vietnamese stock markets recovered after August 22, 2023, as Powell chose a gentle approach at the Jackson Hole conference.
🟩But this recovery was stopped by the inflation expectations returning as oil prices approached the $90/barrel range, and now Powell’s “Hawkish Pause” message in the FOMC meeting on September 20.
🟩The VN-Index fell -1.09%, the VN30 fell -1.25% and the HNX-Index fell -1.16%.
🟩The number of stocks falling was nearly 2.5 times the number of stocks falling on the HOSE floor. Liquidity was higher than the previous session and the VN-Index almost closed at the lowest bottom of the session.
This is a typical price action of the sellers.
🟩After the session on Wednesday, almost all the results were taken away.
The bull was quickly beaten back by the bear and the VN-Index is once again preparing to test the important MA50 day support.
🟩While the stock market reacted negatively, the reactions on the bond market were quite calm.
The 10-year government bond yield of Vietnam only increased by 17 basis points, to 2.711%.
Almost the bond yield in September was flat, supporting the recovery of the Vietnamese stock market.
🟩The USD/VND exchange rate today rose again 55 dong on the free market, to 24,350.
In the macro report on September 20, KBSV Securities Company forecasted that the USD/VND exchange rate on the official market could reach 24,550.
However, KBSV said that the SBV will not intervene in the short term as inflation is still under control and the economy continues to be supported by monetary policy.
🟩Back to the stock market, foreign investors sold more than 350 billion today.
Interest rate-sensitive sectors such as securities and residential real estate fell sharply.
SSI stock fell more than -4.66%. VIC fell -2.43%.
This is one of the stocks that dragged the market down sharply.
🟩Steel stocks and basic materials performed a little better.
According to Fireant’s data, the basic materials group rose slightly +0.26%, along with health +0.36% and telecommunications +0.06% as the outstanding sectors.
🟩HOW DO TRADERS ACT? - BUY SIGNAL 🪻LTG.
🟩Today was a strong distribution day of the VN-Index, as the distribution nature occurred right from the beginning of the session, despite the fact that it was the derivative expiration day.
🔴This is the fifth distribution day of this index.
