Market Highlight 10.07.2025

   China’s National Bureau of Statistics reported yesterday that the country’s Consumer Price Index (CPI) edged up by 0,1% in June, marking its first increase in 5 months. However, producer prices (PPI) declined at their fastest pace in two years, falling by 3,6%, highlighting ongoing instability in the manufacturing sector amid global trade tensions and persistently weak domestic consumption. The PPI for the world’s second-largest economy has remained in negative territory since October 2022, fueling concerns over mounting deflationary pressures in the second half of this year. While China and the United States agreed on a framework deal to ease trade tensions in June, uncertainty persists as President Donald Trump continues to threaten new tariffs on America’s trading partners.
  The USD Index slipped modestly yesterday but remained near its two-week high as markets await details on the next round of tariffs the U.S will impose on its trading partners. President Trump has also proposed a 50% import tariff on copper and signaled that even higher rates may be applied to semiconductors and pharmaceuticals. Algeria, Iraq, Libya, Sri Lanka, and the Philippines are among the latest countries to receive tariff notification letters, with rates reaching as high as 30% effective August 1, while tariffs on imports from Brazil have been sharply increased to 50%.
  Domestically, the USD/VND interbank exchange rate ticked up slightly yesterday, trading mainly in the 26.130 - 26.150 range as the market continues to monitor and assess the potential impacts of upcoming U.S tariff measures. Foreign currency supply and demand remained broadly balanced during the first week of July, though mild upward pressure has persisted in line with the USD’s short-term rebound on global markets. The exchange rate is forecast to continue trading within the 26.100 - 26.200 range today.

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