Understanding the Market | CRO concept stocks rose in early trading, and the probability of the Federal Reserve cutting interest rates this month remains high. Domestic and foreign pharmaceutical investment and financing are expected to gradually recover
CRO concept stocks rose in early trading, with WuXi AppTec up 3.2% and WuXi Biologics up 1.7%. The probability of a Federal Reserve interest rate cut has risen to 74%, and the market holds an optimistic view on the future investment and financing environment. Bank of China International expects the investment and financing in the pharmaceutical industry to gradually warm up, with the CXO and research service sectors likely to emerge from the trough
According to Zhitong Finance APP, CRO concept stocks rose in early trading. As of the time of writing, WuXi AppTec (02359) was up 3.2%, trading at HKD 51.6; WuXi Biologics (02269) was up 1.7%, trading at HKD 16.72; Kanglong Chemical (03759) was up 0.89%, trading at HKD 13.66; and Kelaiying (06821) was up 0.39%, trading at HKD 51.5.
In terms of news, several Federal Reserve officials expressed a cautious attitude towards the future policy path of the Federal Reserve, avoiding providing too much guidance on the interest rate path for December and beyond. Meanwhile, the Federal Reserve's Beige Book assessment of the U.S. economic situation was relatively optimistic. However, the latest CME FedWatch Tool shows that traders expect the probability of a rate cut by the Federal Reserve this month to rise to 74%, briefly exceeding 80% during the session.
Bank of China International pointed out that in recent years, due to relatively high pressure in the investment and financing environment, sectors in the pharmaceutical industry that are closely related to investment and financing, such as pharmaceutical outsourcing and research services, have continued to be under pressure. With the recovery of the secondary market, we expect the domestic investment and financing situation to gradually improve. Additionally, global investment and financing have also gradually warmed up in recent years. Furthermore, the emergence of some new fields (such as ADCs and peptide drugs) has also added new momentum for investment in the pharmaceutical industry. This is expected to further increase the demand for CXO and research services. Against this backdrop, the CXO and research service sectors, which are primarily focused on domestic business, are expected to gradually emerge from the trough