CITIC Securities: Expectations of Fed rate cuts heating up, favorable for domestic easing expectations, awaiting important meetings this week

CITIC Securities released a research report stating that the increasing expectation of a rate cut by the Federal Reserve is favorable for domestic easing expectations. Investors are waiting patiently for this week's important meeting. Market turnover and valuation indicators are approaching historical extremes, the China Securities Regulatory Commission has introduced new margin trading rules, and overseas liquidity is improving. The weak growth in non-farm payrolls in the United States in June, coupled with consecutive declines in inflation data, indicates a marginal improvement in overseas liquidity due to economic cooling. Recently, Federal Reserve Chairman Powell's remarks have boosted market expectations of a rate cut. Overall, the repair of domestic fundamentals still requires patience, there are signs of marginal slowdown in external demand, and significant market opportunities still need to be awaited. In the next phase, attention is needed on whether the renminbi exchange rate can stabilize and rise under the expectation of a Fed rate cut, and whether China's monetary and fiscal policies will see significant tightening