The Fed's latest moves have triggered volatility in global markets, while A-shares seem to be finding a different path. In his latest micro-headline article by financial commentator Xiao Zhang, he provides a unique analysis of recent market trends. The U.S. dollar's sharp presence in the overnight market had an initial impact on A-shares, allowing them to open with a gap high on Thursday, December 14, but then underperformed, with most indices trending at the end.
Xiao Zhang pointed out that although the trading volume of All A on Thursday was lower than the previous trading day, showing the overall cautious attitude of the market, the reasons behind this are worth pondering. In particular, sectors such as utilities and state-owned enterprise reform performed better, while sectors such as liquor and Huawei automobiles were relatively weak.
Judging from these signs, the conservative mentality of the market is beginning to appear. Xiao Zhang commented. He believes that this reflects investors' concerns about the current economic environment.
The outcome of the Fed's interest rate meeting is also the focus of market attention. Although the benchmark interest rate remained unchanged, the Fed unexpectedly announced that it could cut interest rates by 75 basis points next year, exceeding market expectations. This news led to the US dollar**, US stocks**, but the A** market failed to follow this positive trend.
For the A** market, the trend of interest rate cuts on the periphery should have been good news, but the market reaction was relatively lukewarm. Xiao Zhang analyzed. He believes that this may be related to the market's desire for "quantitative economic stimulus" and investors' excessive focus on short-term results.
Zhang also paid attention to the latest developments in the property markets in Beijing and Shanghai, believing that these policy adjustments may herald broader economic easing measures. He expects that under the trend of the Fed cutting interest rates, more easing policies may be introduced in China, such as RRR cuts and interest rate cuts.
Xiao Zhang's analysis caused a wide discussion among readers, and many people expressed their opinions on the reaction of the A** field in the comment section. At the end of the article, Xiao Zhang wrote: "The weak reaction of the A** field may hide a deeper market mentality and economic strategy. At this critical juncture, we should pay more attention to the underlying logic behind the market.