Huatai Securities: The US dollar and oil prices are stronger than expected this year, while global liquidity easing is lower than expected
According to a report by Jinshi, Huatai Securities' research indicates that the duration of the current Middle East conflict and its impact on global supply and demand have exceeded "temporary" shocks, leading to substantial breaks in funding and supply chains. It is expected that the US dollar and oil prices will be stronger than anticipated this year, while the global liquidity easing will be lower than expected, and the potential for valuation increases will also be below expectations. The market may experience a psychological process of shifting from tracking news to returning to fundamentals, with increased focus on material shortages, supply chain, and cash flow risks. Huatai Securities recommends maintaining a certain level of caution towards volatility.
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