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2026-07-17 18:14:12
[Energy Hedging Buffer Thins, Fidelity Warns Companies Second Round of Shocks Will Be More Troublesome] ⑴ Most companies weathered the first wave of energy price surges this year thanks to hedging tools and inventory accumulation. However, an internal Fidelity survey shows that 55% of analysts expect their covered companies to face greater inflationary pressures in the coming year. ⑵ As existing hedging protections expire, the rise in energy, freight, and raw material costs will become more apparent. The consumer, industrial, and utilities sectors are expected to bear the most significant cost pressures, and this pressure will spread across regions and industries. ⑶ Traffic in the Strait of Hormuz has essentially stalled due to the mutual attacks between the US and Iran. Oil prices have risen to a one-month high, and gas prices are approaching a four-month peak. The intensity and duration of the second round of supply shocks have significantly exceeded initial expectations. ⑷ Fidelity's Chief Investment Officer for Equities points out that companies' ability to cope with cost pressures will become a key differentiating factor in investment selection. Those companies lacking pricing power or unable to pass on costs will face the risk of downward revisions to earnings expectations.
