On Thursday, the Shanghai Composite Index once again reached new highs, targeting the 3900-point level. Overnight, the Federal Reserve initiated another rate-cutting cycle, with dovish signals indicating two potential additional rate cuts this year. A rate-cutting channel for A-shares may simultaneously open, benefiting the medium to long-term outlook for equity assets. In terms of indices, the CSI 1000 and CSI 500 reached new highs again. By midday, the CSI 1000 led the four major indices with a 1.33% gain to 7655.38 points. The artificial intelligence industry chain gained momentum again, with the STAR 50 Index rising over 3% in the morning session. All four major stock index futures posted gains, with the CSI 1000 quarterly contract 2603 leading the advance, up 1.74% by midday. This round of market activity is primarily driven by medium to long-term policy expectations, with relatively limited fundamental impact. The liquidity-driven rally is expected to continue but exhibits distinct structural characteristics, with market sector rotation potentially accelerating.
Overseas liquidity is trending toward loosening, with the Federal Reserve cutting rates by 25 basis points as expected. The Bank of England and Bank of Japan interest rate meetings are also scheduled for this week, with markets focusing on the extent of overseas monetary policy easing. Improved liquidity has driven global stock markets, with overnight U.S. stocks showing mixed results - the Dow Jones Index closed up 0.56%. European markets saw gains with the FTSE 100 and Germany's DAX indices both closing higher. In Asia-Pacific markets, Japan's Nikkei 225 and South Korea's KOSPI gained over 1% during intraday trading, reaching new highs for the year. With liquidity rally expectations continuing, attention focuses on whether trading volumes across markets will expand.
The current market momentum is primarily based on medium to long-term policy expectations, with fundamental factors having relatively limited influence. The liquidity-driven market is expected to persist but demonstrates clear structural characteristics, potentially accelerating sector rotation patterns.
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