Market Highlight 18.08.2026

According to official data released on Monday, China’s economic growth momentum broadly slowed in July as consumer spending and investment weakened. Retail sales increased by only 0,6% YoY in July, slower than the 1% growth recorded in June. Fixed-asset investment fell by 6,7% in the January-July period compared with the same period in 2025, while property investment declined by 19%, highlighting the severe weakness in China’s real estate market. On a more positive note, China’s technological capabilities continue to advance rapidly, as demonstrated by sophisticated artificial intelligence models that have shaken Silicon Valley. Exports remained an important growth driver for the world’s second-largest economy, rising by 24% YoY in July. According to estimates, exports of semiconductors and computer equipment contributed more than 10% of China’s overall export growth in July. Electronics manufacturing and information technology & telecommunications services accounted for around one-third of China’s economic growth in Q2. China’s GDP expanded by 4,3% in the previous quarter, the slowest pace since 2022.

The USD Index recovered toward the end of yesterday’s session after the 30-year U.S Treasury yield rose to its highest level in nearly two decades at 5,31%. This reflected investor concerns over rising U.S Government spending, the large volume of long-term Treasury issuance, and inflation remaining above the Federal Reserve’s target for the past 5 years.

Domestically, interbank USD/VND posted its second consecutive sharp daily increase, rising by VND 75 and closing the day at 26.215. The effective daily ceiling increased by a further VND 26 to 26.865.

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