At the end of the trading session on May 23, the green color covered 4 groups of raw materials that are directly connected to the world at the Vietnam Commodity Exchange, helping the MXV-Index to increase by more than 1% to the level. 3,031.84 points.
However, the commodity that has received the most attention from domestic investors is crude oil, which has been struggling with small changes, causing the cash flow to slow down markedly. The trading value of the whole Department dropped sharply by nearly 20% to VND 4,700 billion in the first session of the week.
Oil prices closed with a very slight increase yesterday. Specifically, WTI oil closed almost unchanged at 110.29 USD/barrel, while Brent oil increased 0.77% to 113.42 USD/barrel. The market struggled to find direction amid conflicting fundamental information.
The EU has committed to support 2 billion USD for Hungary, Czech and Slovakia to change the facilities to reach consensus among all 27 members. Several other members have urged allies to come to a consensus by May 30.
However, according to the News Center of the Vietnam Commodity Exchange, the possibility of EU members reaching an agreement in a short time is not too great, especially when the EU has 3 members that depend a lot on supply. energy from Russia, leaving them vulnerable to heavy economic damage from the imposition of sanctions, despite commitments to support from the EU.
On the other hand, the pressure from the possibility of a weakening economy is a factor that puts pressure on prices, especially when crude oil prices have maintained around the 100 USD/barrel zone since March. This has led to a series of prices. Refined products like gasoline in the US hit all-time highs, while diesel prices are also at multi-year records.
High energy costs cause difficulties for both consumers and manufacturing operations. According to the Managing Director of the International Monetary Fund Kristalina Georgieva, the possibility of major economies falling into recession cannot be ruled out, although the probability of this case is not great.
Last night, the President of the European Central Bank said it would likely abandon negative interest rates by the end of September, by pushing members to raise rates at their July and May policy meetings. 9.
Maintaining low interest rates is a policy to stimulate the economy to develop, because a cheaper currency will stimulate spending of the whole bloc. However, with the current inflationary pressure, an increase in interest rates is considered necessary to avoid high price pressure. Other central banks in the world such as the US Federal Reserve (Fed) have gradually raised interest rates since the beginning of this year.
In the domestic market, the Inter-Ministry of Industry and Trade – Finance has increased gasoline prices by about 670-680 VND/liter in the adjustment period on May 23. Thus, after 04 consecutive price increases in the past month, the domestic gasoline price has reached a new record of nearly 31,000 VND/liter for RON 95-III gasoline.
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