Understanding the Market | Non-ferrous stocks collectively fell in early trading. Institutions say that the expectations for a rate cut in September are relatively sufficient, and metal price fluctuations may be amplified
Non-ferrous stocks collectively fell in early trading, with JIANGXI COPPER down 4.53% and CHALCO down 4.35%. Guotai Junan Securities pointed out that the U.S. August CPI met expectations, raising interest rate cut expectations, which may lead to increased volatility in metal prices. Although concerns about a recession have arisen due to a weakening job market, domestic and foreign policy support and the upcoming demand peak season may drive the performance of industrial metals. CITIC Securities believes that the prices of industrial metals are influenced by both financial and commodity attributes, and expects demand for copper and aluminum to improve
According to Zhitong Finance APP, non-ferrous stocks collectively fell in early trading. As of the time of writing, JIANGXI COPPER (00358) dropped 4.53%, trading at HKD 25.3; CHALCO (02600) fell 4.35%, trading at HKD 7.26; Luoyang Molybdenum (03993) decreased by 3.87%, trading at HKD 12.41; Zijin Mining (02899) declined 3.79%, trading at HKD 28.42.
Guotai Junan Securities stated that the U.S. August CPI was basically in line with expectations, and the weakening job market is becoming increasingly evident, leading to a sustained rise in interest rate cut expectations. The anticipated liquidity turning point has significantly boosted prices for both precious and industrial metals. As the September interest rate meeting approaches, the market is waiting for guidance from the Federal Reserve on the subsequent interest rate cut path, while the ongoing negotiations between China and the U.S. may amplify metal price fluctuations. The firm pointed out that for industrial metals, the continuous weakening of the job market has raised concerns about a market recession, but considering the supportive domestic and foreign policies, along with the upcoming peak demand season, industrial products are expected to continue performing well.
CITIC Construction Investment previously stated that industrial metal prices are determined by both "financial attributes" and "commodity attributes." From a financial perspective, the Federal Reserve has entered a rate-cutting cycle; from a commodity perspective, global copper and aluminum inventories are at relatively low levels, and China's economic recovery is expected, coupled with the boost from the new energy sector, leading to an improvement in copper and aluminum demand
