STOCKS | Guosheng Securities Warns of Potential Stock Market Adjustment Amid Rising Oil Prices

On March 20, Guosheng Securities released a report indicating that the U.S. Federal Reserve may adopt a cautious stance in the short term due to increasing uncertainties, particularly focusing on changes in oil prices and the duration of high oil prices. According to Jin10, the report suggests that the situation in Iran has persisted for over three weeks without signs of rapid resolution, pointing to sustained high prices for crude oil, natural gas, and other energy sources. The report outlines a scenario where rising oil prices lead to increased inflation, prompting the Federal Reserve to pause interest rate cuts or even consider hikes, thereby increasing the likelihood of stagflation. This situation is expected to gradually tighten global liquidity and continue to suppress market risk appetite. Guosheng Securities advises caution regarding the potential for a significant adjustment in the stock market.