Hong Kong Stock Concept Tracking | Market Focuses on Fed Rate Cut Signals, Institutions Bullish on Long-term Trends in Precious Metals and Non-ferrous Commodities (with Concept Stocks)

Federal Reserve Chairman Powell stated that the second-quarter economic data has given policymakers more confidence in sustainable inflation towards the 2% target.

His remarks may pave the way for a rate cut in the near future.

Powell mentioned three latest inflation data points, but he explicitly stated that he does not intend to send any specific signals about the timing of a rate cut.

CITIC Securities research report pointed out that precious metals and restricted supply of non-ferrous commodities have performed well in the first half of the year, reflecting three core logics:

1. Excessive issuance of the US dollar, credit restructuring, the imminent start of the US rate-cutting cycle, and global geopolitical tensions.

2. Supply constraints, constraints on dual-carbon related policies and prevailing resource protectionism, insufficient capital expenditure leading to rigid supply constraints.

3. Explosive demand, the Fourth Industrial Revolution guiding the significant increase in demand for related metals, especially minor metals, which are experiencing a golden moment.

Looking ahead to the second half of the year, although recent weak US data has raised concerns about a trade recession, even if the US economy weakens, its limited impact on the global new quality productivity direction, the above three core logics remain unchanged. The long-term trend of precious metals and non-ferrous commodities remains bullish, but the current allocation pace is crucial. Recommended order: minor metals > precious metals > base metals.

Precious Metals + Non-Ferrous Related Companies:

SD GOLD (01787), ZHAOJIN MINING (01818), Lingbao Gold (03330), Zijin Mining (02899), CHINAGOLDINTL (02099), Luoyang Molybdenum (03993), etc