When the Vietnam market was closed for the holiday, global markets plummeted concurrently

DNHN - While the Vietnamese market is closed to commemorate King Hung's death anniversary, the global stock market is under pressure to drop points ahead of key events that affect global monetary policy, such as the US inflation report in March and the European Central Bank's monthly scheduled meeting.

The Asian market sentiment remains cautious today 11/4, following a week in which the MSCI Asia-Pacific stock index outside Japan plummeted by 2.6 per cent and is currently down approximately 0.1% at 9 a.m Vietnam time. The Nikkei 225 index Monday morning is now down 0.7 per cent, continuing its decline of 4.2 per cent in the previous week. 

Leading the decline of the Asian market is China - the world’s second-largest economy, with the Hang Seng Index currently down more than 2.5% in the context of Shanghai is currently under lockdown due to the largest outbreak with the largest number of cases. A record number of infections reached more than 23,000 patients a day, fearing that it would affect the economic contribution of the region, which accounts for 4% of China's GDP.

European stocks opened slightly lower on April 11 with the EU50 index (the top 50 firms in the European Union) trading at 3825 points, down up to 3.3 per cent from the previous day. It was the 46th day since Russia launched a special military operation in Ukraine at the start of last week, and the fighting showed no indication of abating. Economic penalties continue to be imposed; most recently, on April 7, the European Union authorized a restriction on Russian coal imports, as well as a prohibition on Russian ships and boats docking at allied ports. 

France, which currently chairs the EU Council on a rotating basis, said the move was part of the EU's fifth round of sanctions against Russia in response to its military assault in Ukraine. At the moment, Russia supplies 45per cecentof f the coal consumed by EU member states, amounting to 4 billion euros each year. This prohibition is scheduled to begin in August of next year. After these bans, coal prices increased by 13% on the commodity market.

The European Central Bank will also meet this Thursday, with a focus on inflation. "Inflation has exceeded the European Central Bank's projections just a month ago, and we anticipate a policy shift with policy termination," TD Securities analysts stated. monetary easing in April and May, and prepare for a June rate hike." 

According to new data from the European Union (EU) released on April 1, inflation in Europe in March spiked to a record 7.5% with rising energy costs as the main reason, reaching 44. 7%. The central banks of Canada and New Zealand are expected to raise interest rates by 0.5% at their meeting this week to prevent inflation from spiralling out of control. 

In the world's largest market, S&P 500 futures are currently trading down 0.6% in early trading. Wall Street is reacting fairly well, falling just 2% last week in the face of a sell-off on 10-year Treasuries, sending yields up to lows, according to economists at JP Morgan. more than 2.77%, the highest since 2018 when markets from bonds to commodities and securities competed to price in the face of the risk of a sharp increase in interest rates by the Fed. 

B of A American economist Ethan Harris now expects the Fed to raise interest rates by half a point at each of its next three meetings, the last two being in May and June, by a rate the cycle peak interest rate is about 3.25-3.50%. He added: “If inflation is stuck above 3%, the Fed will need to raise interest rates until economic growth drops to near 0%, face a recession if it does not want inflation to break out. control". On Tuesday, April 12, the US will publish March inflation, with most economists expecting it to be a record number again due to soaring fuel prices. 

 Anh Dũng