HK Stock Market Move | Copper stocks lead the decline as expectations of another Fed rate hike heat up; institutions say the marginal support for copper prices is weakening going forward.

Copper stocks led the decline. As of press time, CMOC Group Limited (03993) fell 4.09% to HK$15.02; JIANGXI COPPER (00358) fell 3.04% to HK$33.14; CHINAGOLDINTL (02099) fell 2.99% to HK$221; MMG (01208) fell 2.82% to HK$8.615. On the news front, on Wednesday, the 10-year U.S. Treasury yield climbed as high as 5.07%, the highest level since 2007. Several Federal Reserve officials signaled that if inflation does not fall back quickly, the Fed may further tighten monetary policy. Bank of America recently warned that investors should begin preparing for the risk that the Fed will raise its benchmark interest rate above 5%. The rates market still underestimates the level the Fed's hiking cycle may ultimately reach. Cinda Futures released a research report stating that in the short term, copper concentrate supply is relatively tight, but because the expected tariff premium has fizzled out, combined with the macro narrative of rate hikes, the one-way upward trend has temporarily ended. (However, domestic spot premiums are relatively high, willingness to take delivery is currently strong, and there is a small probability of extreme short-term market moves.) After October, as some mines gradually resume operations and domestic demand growth weakens, the marginal support for copper prices will diminish.