Market Highlight 04.09.2024

   The USD and JPY served as safe-haven currencies yesterday as U.S stock markets recorded their sharpest decline in nearly a month. The catalyst was weaker-than-expected manufacturing data from the U.S, raising concerns about the growth prospects of the world's largest economy ahead of the August jobs report, set to be released this Friday evening. Specifically, the U.S manufacturing PMI rose slightly last month from an eight-month low in July to 47,2 points, as job numbers in the sector improved, but the overall trend remains weak. With the Federal Reserve set to begin cutting interest rates in about 2 weeks, the key question now is how large the initial cut will be? The August jobs report could be decisive in answering this question. The market is currently pricing in a roughly 40% probability that the FED will cut rates by 0,5% on September 18.

   Recent activity data from major manufacturing hubs in Asia indicate that growth momentum has slowed somewhat in mid-Q3, but output and orders continue to rise. Manufacturing activity improved in Japan and South Korea in August, while indices in India, Thailand, Taiwan, and Malaysia showed expansion, albeit at a slower pace. China's Caixin PMI returned to growth territory; however, this index tends to weigh more heavily on companies with export-oriented business operations.

   The interbank USD/VND exchange rate closed at 24.875 on the last trading day before the September 2 holiday, reflecting a weekly decline of approximately 105 dongs, despite the USD Index recovering more than 1% last week following 5 consecutive weeks of declines. The exchange rate on the free market is currently trading around 25.240 – 25.320, up about 120 dongs compared to the end of last week.

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Directly contact us to receive market news and consultancy on foreign exchange products and derivatives:

- Financial Markets Division – Email: ktttc@acb.com.vn ; or

- Mr. Khanh Hoang (Financial Markets Senior Analyst) – Email: hoangnk@acb.com.vn