HONGDA NEW MATERIAL(002211.SZ)

Commodity futures closed with the main contract for lithium carbonate hitting the limit down, falling by 8.99%. The shipping European route dropped over 8%, Shanghai tin fell over 6%, Shanghai nickel declined nearly 4%, and BR rubber, fuel oil, caustic soda, and crude oil all fell over 3%. Polycrystalline silicon and rapeseed oil rose over 2%

RUBBER-Japan futures gain as adverse weather threatens supply

Japanese rubber futures rose on January 16, recovering from previous losses due to adverse weather in Thailand and Indonesia threatening supply. The Osaka Exchange rubber contract for June delivery increased by 2.3 yen to 356.4 yen per kg, marking a potential sixth consecutive weekly gain. Meanwhile, the Shanghai Futures Exchange saw a slight decline in rubber prices. Weather warnings in Thailand and Indonesia are expected to tighten supply, leading to cautious selling among processors and supporting rubber prices.

Telcos stalling on 5G-SA waiting for 6G

The telecom industry is facing challenges in rolling out 5G Standalone (SA) technology due to a lack of market demand and the impending arrival of 6G. Many Communications Service Providers (CSPs) are hesitant to invest in 5G-SA, viewing it as a costly upgrade with uncertain benefits. The rollout is influenced by government policies, leading to regional disparities. While China leads in 5G-SA deployment, Europe struggles with regulatory issues. Infrastructure vendors are adapting by focusing on programmable networks to make the SA upgrade more attractive.

Bank of East Asia expects the Hang Seng Index target to be 30,800 points by the end of this year, estimating three to four rate cuts by the Fed

East Asia Bank investment strategist Eric Wu expects that the global market will be relatively loose this year, with the United States likely to cut interest rates three to four times, and the S&P 500 index could reach 7,500 points by the end of the year. Regarding Hong Kong stocks, East Asia Bank targets the Hang Seng Index at 30,800 points by year-end, with corporate earnings expected to rise by 13%. He suggests focusing on industries such as AI, automotive, and smart driving supply chains in mainland China. Chen Weicong believes that the central bank's interest rate cuts are not a comprehensive easing, which may benefit AI and high-end manufacturing

RUBBER-Japan futures fall from 10-month high on lower oil prices

Japanese rubber futures fell from a 10-month high due to profit-booking and declining oil prices. The Osaka Exchange rubber contract for June delivery dropped 0.5% to 355.1 yen per kg, while the Shanghai Futures Exchange contract for May delivery decreased by 1.73% to 15,930 yuan per metric ton. Analysts noted that investors were de-risking ahead of the weekend. Oil prices also fell after comments from U.S. President Trump eased concerns about supply disruptions in Iran. Natural rubber prices are influenced by oil prices as they compete with synthetic rubber.