Morgan Stanley expects that the demand for energy storage systems will create upward space for metal stocks, with a positive outlook on aluminum, copper, gold, lithium, and cobalt

Morgan Stanley published a research report indicating that the bank's global strategy team expects the dollar bear market cycle to continue, estimating that the US Dollar Index may drop another 5% in the first half of next year, and rebound in the second half due to carry trades. They anticipate that the Federal Reserve will cut interest rates three more times, with a supportive macro environment, along with supply disruptions in copper, aluminum, and cobalt, providing support for commodity prices.

Morgan Stanley is also optimistic about the development of energy storage systems, predicting that related demand will grow by about 50% next year. The demand remains strong, with a current preference for stocks related to aluminum, copper, gold, lithium, and cobalt. They are bullish on Zijin Mining (02899.HK), CMOC (03993.HK), CHINAHONGQIAO (01378.HK), Chalco (02600.HK), Jinli Permanent Magnet (06680.HK), Huayou Cobalt (603799.SH), and Huaxin Cement (06655.HK), all rated as "Overweight." The bank also noted that the industry's anti-involution actions are gradually advancing, and investors need more patience to see policy results