MXV-Index maintains its historical peak.

The MXV-Index remains above its historical peak. *Source: MXV*

At closing, the MXV-Index rose 0.5% to 3,050 points, continuing to hold above its historical peak.

According to the Vietnam Commodity Exchange (MXV), the rubber market was a bright spot in the session, with both key commodities experiencing strong gains. At the close of trading, TSR20 rubber prices rose 4.42% to $2,610 per ton, while RSS3 June futures increased 1.73% to $2,316 per ton.

The main driver supporting prices comes from concerns about supply shortages in Southeast Asia, particularly Thailand – the world's largest producer and exporter of natural rubber. According to MXV, Thailand's rubber exports in the first quarter decreased by approximately 15% compared to the same period last year. At the same time, the country is entering its rainy season, increasing the risk of disruptions to harvesting and productivity in key rubber-growing regions.

Many other major rubber-producing countries in the region are also being negatively impacted by El Niño. Forecasting models indicate that the current drought is the most severe in about a decade, raising concerns about a potential decline in production in the near future.

Furthermore, the sustained high price of crude oil is also contributing to the support of the natural rubber market. Amidst ongoing geopolitical tensions in the Middle East, the sharp increase in the cost of producing synthetic rubber is making natural rubber more competitive in terms of price.

Domestic car sales in China. *Source: MXV*

However, the market's upward momentum was somewhat restrained by weakening consumption prospects in China. The latest data showed that domestic car sales in China in April fell 21.6% year-on-year, while retail passenger car sales recorded their seventh consecutive month of decline.

In the domestic market, rubber latex prices continue to rise. On the morning of May 14th, the price of liquid latex increased by about 5-10 VND/degree, fluctuating around 540-555 VND/degree. The price of cup latex also increased by about 1,000 VND/kg, reaching 25,000-27,000 VND/kg.

The chart shows the PPI index in the US. *Source: MXV*

Energy stocks are under pressure to correct as the market worries that the US Federal Reserve (FED) may maintain its hawkish monetary policy for longer than expected. The US Senate confirmation of Kevin Warsh as the new FED chairman, along with a strong April producer price index (PPI) increase, has fueled expectations of prolonged high interest rates.

At the close of trading, WTI crude oil prices fell by approximately 1.14% to $101 per barrel, while Brent crude oil dropped nearly 2% to $105.63 per barrel. According to MXV, the possibility of the Fed continuing to maintain high interest rates could slow economic growth and weaken global energy demand. Simultaneously, prolonged high oil prices also risk destroying demand, putting pressure on the crude oil market for a correction.

Source: https://hanoimoi.vn/mxv-index-duy-tri-tren-dinh-lich-su-749868.html