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2025-09-17 07:40:22
Industrial Securities: How will major asset classes perform after the Fed's rate cut? Industrial Securities released a research report stating that with the Federal Reserve's upcoming September meeting, the market currently expects the Fed to cut interest rates three times this year. Regarding the September rate cut, 95% believe it will be a 25bp "precautionary" cut. Historically, the Fed's "precautionary" and "recessionary" rate cuts have had different impacts on major asset prices. Following the precautionary rate cut, A-shares benefited from easing liquidity and increased risk appetite. Within the industry, technology sectors such as TMT, as well as core consumer assets such as food and beverage, social services, beauty and care, and pharmaceuticals and biotechnology, outperformed. Hong Kong stocks are more sensitive to easing external liquidity than A-shares. Therefore, Hong Kong stocks have generally risen in the short term due to pricing in easing liquidity. Consumer staples and discretionary sectors, industrials, and technology sectors performed well after the precautionary rate cut. Regarding gold, the precautionary rate cut provided a short-term boost to prices due to easing liquidity, but with improved economic expectations and a rebound in the US dollar and US Treasury bonds, gold prices may begin to decline.
