Hexun Investment Advisor Gao Luming: These Five Major News Events Will Directly Impact Monday's Market Movements!

Friends, the weekend news has become clear. Let’s take a look at the major events happening in domestic and international markets and how they might influence market trends on Monday.

The first piece of news is positive for the photovoltaic sector. Recently, Tesla has been purchasing large quantities of photovoltaic equipment in China, involving several listed companies. This news has been largely confirmed, with contract volumes reaching gigawatt levels. This is a positive signal for photovoltaic equipment and related sectors. However, market sentiment is currently weak. Although the sector is expected to perform well, if funding support is insufficient, it’s not advisable to chase high-priced stocks in this area.

The second piece of news is positive for digital renminbi. Several banks and joint-stock city commercial banks are beginning to participate in the digital renminbi pilot program and are preparing to connect to the central bank’s system. This is a favorable development for digital renminbi-related sectors.

The third piece of news is the ongoing escalation of geopolitical tensions. The U.S. plans to deploy more ground troops to the Middle East and has attacked Iran’s nuclear facilities. Iran has retaliated and warned that if the Strait of Hormuz remains blocked, it will strike back even harder. As a result, global energy conditions continue to worsen, with European and American stock markets plunging on Friday, which could negatively impact the A-shares market on Monday.

The fourth piece of news is the ongoing escalation of global energy tensions. Southeast Asia, heavily dependent on Middle Eastern oil, is facing difficulties. Oil tankers in Phuket have stopped operations due to fuel shortages, and several airlines are reducing flights amid soaring oil prices. Some gas stations in Sydney have run out of diesel. After the Strait of Hormuz was blocked, food prices in some developing countries began to rise, and this will likely affect poultry and egg prices later. The conflict outside the region increasingly impacts global energy supplies and daily life. The longer these tensions last, the greater the impact on the economy and stock markets. This remains a short-term risk to watch closely.

The last piece of news is the intensifying rumors of interest rate hikes outside the U.S. and Europe. The European Central Bank may raise interest rates three times this year, each by 25 basis points. In the U.S., there is emphasis that if inflation continues to rise, interest rate cuts may be off the table, or rates could even be increased. This has been a key factor behind the sharp decline in European and American stock markets on Friday, along with a significant drop in gold prices. Next week, we need to be cautious of this, especially as it could negatively affect precious metals and put pressure on global markets. The first half of next week still requires vigilance for risks.

Of course, there’s no need to overly worry about the index. Although Monday may be affected, the overall trend next week is likely to see a rebound and stabilization that many are expecting.

(Edited by: Zhang Yan)

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