Closing Crude oil fell more than 3, and Shanghai tin fell more than 2

Mondo Finance Updated on 2024-02-05

**: Market information.

At midday, the main domestic contracts were mixed. Urea, No. 20 rubber (NR), and container transportation index (European line) rose more than 1%. In terms of decline, SC** fell by more than 3%, low-sulfur fuel oil (LU), Shanghai tin, and red dates fell by more than 2%, and eggs fell by nearly 2%.

Interest rate cuts are expected to recede and the geopolitical crisis is improving, and it is expected that the rhythm will continue before the holiday

Everbright** Comments: Interest rate cut expectations are expected to subside, and the geopolitical crisis is beginning to improve, and **2403 is consolidating at a low level on Monday, entrenched in the range of -2% to -4%. The bullish factors in the early stage gradually dissipated, and it is expected that the rhythm will continue before the holiday, focusing on the latest progress of the Fed's interest rate cut and the evolution of geopolitical conflicts.

1 On the macro front, last Wednesday's Fed interest rate meeting and Powell's speech hit market expectations of interest rate cuts, with Powell bluntly saying that it was almost impossible to cut interest rates in March, and market expectations of interest rate cuts were frustrated. Last Friday's non-farm payrolls data was released, the actual number of non-farm payrolls was about 2 times the expected value, and the employment performance was strong.

2 In terms of fundamentals, as the extreme weather fades, the production of the United States has rebounded, and 70% of the overall loss has returned, and the supply has upward momentum. Most of the countries participating in the OPEC+ voluntary production cut in the first quarter have completed the task, and the OPEC meeting on February 1 was generally in line with expectations, and the effect of the production reduction factor on the first quarter was limited. In terms of EIA inventories, ** inventories and gasoline inventories increased, and they were weak due to the pressure of strong supply and weak demand. In addition, there may be signs of easing the geopolitical conflict, and relevant reports reveal that a truce agreement may be reached between Palestine and Israel, and the support of the geopolitical crisis has weakened. The market sentiment has cooled, and the support of the superimposed geopolitical conflict has weakened, and it is expected that the weak operation may be maintained.

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