HK Stock Market Move | Colored stocks lead the decline, Fed hawkish cuts by 25 basis points, institutions previously stated that the expectation of a rate cut in September is quite sufficient.

Colored stocks lead the decline. As of press time, JIANGXI COPPER (00358) fell by 2.48% to HK$25.2; CMOC Group Limited (03993) fell by 2.85% to HK$12.28; Aluminum Corporation Of China (02600) fell by 2.12% to HK$7.38; Zijin Mining Group (02899) fell by 1.26% to HK$28.14. In terms of news, according to CCTV News, on September 17th local time, the Federal Reserve of the United States ended its two-day monetary policy meeting and announced a 25 basis point cut to the federal funds rate target range to between 4.00% and 4.25%. Despite the expected rate cut, Federal Reserve Chairman Powell emphasized in the press conference after the interest rate decision that this does not mean the start of a long period of rate cuts; Powell acknowledged the weakness in the labor market but believed that the current situation did not warrant a larger rate cut. Guotai Haitong previously released a research report stating that the US CPI in August met expectations, combined with a gradually apparent weakness in the job market, leading to a continuous increase in rate cut expectations. With expectations of a turning point in liquidity, both precious metals and industrial metal prices are expected to be significantly boosted. As the September meeting approaches, market participants are waiting for guidance from the Federal Reserve on the future rate cut path, while the ongoing US-China trade negotiations may amplify metal price fluctuations. The report points out that for industrial metals, concerns about market recession have risen due to the continuous weakness in the job market, but with policy support and the upcoming peak season in demand, industrial products are expected to continue to perform well.