Understanding the Market | Non-ferrous stocks rose across the board today, as the interest rate cut cycle begins and the peak demand season approaches, metal prices are expected to rise

Non-ferrous stocks rose across the board today. As of the time of publication, Chalco rose by 6.37% to HKD 5.01; Luoyang Molybdenum rose by 6.08% to HKD 6.11; Ganfeng Lithium rose by 5.5% to HKD 16.88; Jiangxi Copper rose by 2.89% to HKD 12.82. On the news front, the Federal Reserve announced on the 18th local time that it would cut the federal funds rate target range by 50 basis points to a level between 4.75% and 5.00%. This is the first rate cut by the Federal Reserve in 4 years. Pacific Securities believes that with the start of the rate cut cycle, the data side supports the expectation of a soft landing, coupled with the upcoming peak demand season, it is optimistic about the upward trend in base metal prices. China Yousecurities pointed out that gold hit a new high last week, with a pullback in recession expectations. Gold followed the rebound in crude oil, and silver benefited more from the slowdown in recession; the upward cycle for copper may have to wait until some time after the substantial rate cut by the Federal Reserve. Aluminum processing companies maintain a growth trend in production, transitioning to the peak season for aluminum strips and foils, with an improving trend in architectural profiles. Aluminum cables are in a concentrated delivery period, and the fundamentals provide strong support for aluminum prices in the short term