HK Stock Market Move | Middle East situation repeatedly raises inflation concerns, EVEREST GOLD (01815) drops nearly 5%, Shandong Gold Mining (01787) drops over 3%

Gold stocks are generally under pressure. As of the time of writing, EVEREST GOLD (01815) fell by 4.81% to HK$0.99; Shandong Gold Mining (01787) fell by 3.26% to HK$33.28; Chifeng Jilong Gold Mining (06693) fell by 2.61% to HK$41; LINGBAO GOLD (03330) fell by 1.66% to HK$27.24. On the news front, weekend peace talks between the US and Iran ended without results. In addition, the US plan to block the Hormuz Strait has exacerbated global energy supply shocks, causing market concerns about inflation to quickly escalate. According to CCTV International news, US President Trump said on the evening of April 12 local time that he does not care whether Iran returns to the negotiating table, stating that the US will impose a blockade on Iran on April 13 at 10 am Eastern time, which is 10 pm Beijing time tonight. Furthermore, overall inflation in the US in March saw a substantial increase driven by soaring oil prices, while core inflation remained moderate. CITIC SEC believes that if oil prices do not continue to rise significantly, the Federal Reserve should be able to confirm in the second half of this year that private sector inflation expectations are anchored and that the impact of oil price shocks is only temporary. At that time, the Fed's space to ease liquidity will also be naturally available, and the bank still expects the Fed to cut rates by 25bps in the second half of the year.