HK Stock Market Move | COSCO Shipping Holdings (01919) surged more than 5%, leading the shipping sector. Interest rate cuts by central banks around the world could boost international trade. Multiple disruptions are affecting the supply side of shipping.

Shipping stocks continued to rebound recently. As of the time of writing, COSCO Shipping Holdings (01919) rose by 5.34% to 11.06 Hong Kong dollars; Sinotrans Limited (00598) rose by 4.88% to 3.44 Hong Kong dollars; OOIL (00316) rose by 2.31% to 99.55 Hong Kong dollars; SITC (01308) rose by 3.08% to 19.44 Hong Kong dollars. On the news front, on September 18, the Federal Reserve announced a 50 basis point cut in the Federal Funds rate target range, lowering it to between 4.75% and 5.00%. This is the first rate cut by the Fed in four years. ZHONGTAIFUTURES previously pointed out that central banks in many countries around the world are cutting rates again, and the Fed may start a rate-cutting cycle in September. The potential replenishment of macro liquidity may boost expectations for international trade. EB SECURITIES pointed out that the current Israeli-Palestinian negotiations are deadlocked, and sudden geopolitical events are expected to boost sentiment in the shipping market. Negotiations between the North American dockworkers union and the US Maritime Alliance are progressing slowly, with Maersk issuing a warning indicating the increasing possibility of a strike. In addition, ports in Australia, Canada, India, and other countries are also facing strike risks, which will disrupt the global supply chain, impact shipping effective capacity, and suggest to pay attention to the constraints of geopolitical events and strike risks on the supply side of shipping in the future.