HK Stock Market Move | Colorful stocks collectively under pressure, Lingbao Gold (03330) fell nearly 6%, MMG (01208) fell more than 4%.

Colored stocks collectively under pressure, as of press time, Lingbao Gold (03330) fell 5.95% to HK$18.65; MMG (01208) fell 4.08% to HK$9.18; Jiangxi Copper (00358) fell 3.46% to HK$35.72; Aluminum Corporation Of China (02600) fell 3.32% to HK$10.19; CMOC Group Limited (03993) fell 2.42% to HK$17.91. On the news front, driven by the Middle East conflict, energy prices have sharply risen, with the US April PPI significantly exceeding expectations, marking the largest increase in over three years. US Treasury yields subsequently rose, and market bets on a Fed rate hike significantly increased. The CME Group's FedWatch tool shows that the market currently expects a 40% probability of a 25 basis point rate hike by the Fed in December, compared to just 13.6% a week ago. Orient believes that considering the US bond issue, there is significant resistance to actual rate hikes after Warsh takes office, and there may be expectations of liquidity repair around the June FOMC meeting. In terms of industrial metals, as prices recover to high levels, the market may gradually face the time point of switching between peak and off-peak seasons, with slowing de-stocking speeds for various varieties. At this time, prices may experience periodic fluctuations, but considering supply disruptions in some varieties and strong demand for rigidities in areas such as the power grid and semiconductors, price support may be relatively strong.