Stocks, USD fall sharply, gold price increases sharply

One of the most interesting information in March for all markets was the decision of the US Federal Reserve (FED) on USD interest rates. At the beginning of March, investors believed that the FED would increase interest rates sharply after the statement of the FED Chairman. However, after the collapse of Silicon Valley Bank, the FED is believed to limit the increase in interest rates to ensure macro, specifically the stability of the banking system.

Therefore, all eyes were on the US late at night on March 22 (Vietnam time). And as predicted, the FED raised interest rates for the 9th consecutive time. The increase was "only" 0.25% instead of the previously expected 0.5%.

The news has “drowned” the US dollar and the stock market. Meanwhile, the precious metals market has been supported.

The dollar came under pressure near a seven-week low on Thursday as US bond yields fell sharply after the Federal Reserve appeared close to calling for an interest rate hike.

Fed raises interest rates, USD falls, gold prices rise sharply, image 1 — Immediately after the FED raised interest rates for the 9th time, the USD fell sharply while the gold price increased sharply in the world market but only slightly in the country. Illustrative photo

Stocks "red floor"

Last night, the Fed raised its benchmark funds rate by 25 basis points, as expected, but dropped its statement about the need for “continuous increases” in favor of “some additional increases,” as it waits and sees how shaky confidence in banks affects the economy .

This information puts a lot of pressure on stocks and the USD.

Last night, in the US market, the Dow lost more than 530 points, equivalent to 1.6%, after rising as much as 201 points earlier in the day. The S&P500 and Nasdaq fell more than 1.6% at times.

By this morning's trading session, in the Asian market, stocks were also in the red.

Australia's S&P/ASX 200 fell 0.86%, with miners leading the index's losses. In Japan, the Nikkei 225 fell 0.86% and the Topix fell 1.07%. South Korea's Kospi was down 0.67%, with the Kosdaq down 0.24%.

Chinese markets broadly bucked the trend, with the Hang Seng index trading 0.14% higher, the Shenzhen Component up 0.3% and the Shanghai Composite up 0.2%.

In the domestic market, VN-Index is also decreasing significantly with low liquidity. After nearly 1 hour of opening, VN-Index decreased more than 9 points, equivalent to 0.88% to 1,031.44 points.

Exchange rate is "submerged"

Along with stocks, the USD was also "sunk" compared to other key currencies.

The euro rose as much as 1.3% to its highest since early February at $1.0912, although in the Asian morning it fell back to the buying level of $1.0872.

The pound also jumped to a seven-week high as UK inflation unexpectedly rose to a staggering 10.4% and put pressure on the Bank of England to raise interest rates and sound hawkish at its meeting later in the day.

The Fed's "reverse" makes it less likely that markets will return to worries that strong economic data will lead to more rate hikes, said NatWest Markets head of G10 FX strategy Brian Daingerfield.

“From an FX perspective, we think that could trigger further dollar weakness as the ceiling for the Fed cycle has clearly fallen,” NatWest Markets experts forecast.

Financial markets have been roiled by shaky confidence in global banks following a run on Silicon Valley Bank two weeks ago and the sudden collapse of Credit Suisse.

Fed Chairman Jerome Powell said deposit flows had stabilized last week, and smaller lenders said they were somewhat reassured by Yellen's comments that deposit insurance would be considered if there were contagion risks.

In the domestic market, the USD price is also falling sharply.

Vietnam Joint Stock Commercial Bank for Industry and Trade ( VietinBank ) is listing the exchange rate at: 23,323 VND/USD (buy) - 23,683 VND/USD (sell), down 62 VND/USD compared to the end of yesterday.

The exchange rate at Vietnam Export Import Commercial Joint Stock Bank (Eximbank) is bought and sold at: 23,270 VND/USD - 23,660 VND/USD, down 30 VND/USD for buying and down 20 VND/USD for selling.

Gold booms in world market but increases slightly domestically

In contrast to the foreign exchange and stock markets, precious metals are being supported. However, despite a sharp increase in the world market, gold prices have only increased slightly domestically.

Last night, in the US market, the price of gold increased by 32 USD/ounce. By this morning, in the Asian market, this precious metal had increased by more than 5 USD/ounce and is trading at 1,975.1 USD/ounce.

However, in the domestic market, SJC gold price did not increase too strongly.

Bao Tin Minh Chau Gold and Gemstone Company is listing the price of SJC gold at: 66.72 million VND/tael (buy) - 67.33 million VND/tael (sell), an increase of 200,000 VND/tael compared to the end of yesterday.

SJC gold prices in Phu Nhuan, Doji and SJC respectively traded at: 66.60 million VND/tael - 67.30 million VND/tael; 66.55 million VND/tael - 67.25 million VND/tael and 66.65 million VND/tael - 67.35 million VND/tael.

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