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Shares of companies involved in the Cxo concept rose across the board as the Fed is expected to lower interest rates at its September meeting, with the probability of a 50-basis-point cut rising to 83%.

AInvestMonday, Aug 5, 2024 10:20 pm ET
1min read

Shares of CXO concept stocks rose across the board, with Cisri Biotechnology (01548) up 4.71% at HK$12.46 at the time of writing; Wuxi AppTec (02359) up 3.92% at HK$34.45; ChemPartner (03759) up 3.23% at HK$9.92; and CMB Biotech (02269) up 3.06% at HK$11.44.

On the news front, on August 6, Fed's Daly said the economy has been slowing in recent months; the Fed is open to cutting interest rates at its September meeting; the labor market is very stable, and there is no sign of a slowdown turning into a recession; the Fed will do whatever it takes to ensure we achieve our dual mandate. In addition, according to CME's "FedWatch", the probability of the Fed cutting interest rates by 25 basis points in September is 17%, and the probability of cutting by 50 basis points is 83%.

Last week, the US non-agricultural new positions fell far short of expectations, and the market worried about the rising risk of economic recession. The Wall Street giant Jefferies said the time for a major change in the US labor market has come, indicating that the Fed may take a sudden interest rate cut action before its regular meeting in September. Jefferies analysts said in a report that the money market currently expects the Fed to implement a loose monetary policy of 116 basis points before the end of this year, much higher than the 86 basis points expected before the non-farm employment data was released. It now seems that the Fed will take a rate cut action outside of its regular meeting for the first time since March 2020.

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