HK Stock Market Move | Colored stocks fell the most, Middle East conflict leads to central bank policy dilemma, metals are more sensitive to macro interest rates.

Colored stocks lead the decline. As of the time of writing, Chifeng Jilong Gold Mining (06693) fell by 21.63% to HK$32.98; Shandong Gold Mining (01787) fell by 6.56% to HK$30.46; Aluminum Corporation Of China (02600) fell by 5.29% to HK$10.57; JIANGXI COPPER (00358) fell by 5.09% to HK$34.28. On the news front, the escalation of the US-Iran conflict led to Brent crude oil breaking through $110. Several central banks, including the Fed, recently held interest rate meetings and all took a wait-and-see approach, indicating that the ongoing escalation of the Middle East conflict is increasing the dilemma facing central bank policies. Guotou Securities released a research report stating that with the US-Iran conflict continuing, oil prices continue to rise, and the market has begun to expect no interest rate cuts by the Fed this year, and there may even be a possibility of a rate hike in the first half of next year. Precious metals and industrial metals are more sensitive to macro interest rates, leading to a decline in the overall colored plate. China Securities Co., Ltd. released a research report stating that if the economy ultimately enters a recession, gold's performance is relatively good and can be prioritized for allocation after the liquidity shock. In addition, the out-of-control rise in oil prices will drive the accelerated replacement of traditional energy sources with new energy sources, thereby increasing demand for copper. In the US-Iran conflict, the loss on the aluminum supply side has been overshadowed by current panic sentiment, making it a misjudged variety.