According to Jinshi Data, Huatai Securities said that the rebalancing of styles and the improvement of risk appetite caused by the expectation of the Fed's interest rate cut may become one of the main drivers of the global market in the short term. Pay attention to the catch-up opportunities of interest rate sensitive and lagging assets (small-cap, regional banks, biotechnology, Hong Kong stocks and other emerging markets), and A-shares also have certain indirect benefits.

In the medium term, there is still room for interest rate cuts, but we should not be overly optimistic and still need to pay attention to the rhythm. If the US stock market and technology stocks fall significantly, it may be an opportunity to cover positions.

Domestically, the improvement in overseas liquidity may help ease exchange rate pressure, and monetary policy space is expected to open up.