Geopolitical Tensions and Liquidity Concerns Impact Market Sentiment

According to Jin10, a strategy report from Huatai Securities indicates that this week, geopolitical tensions and expectations of global liquidity tightening have led to extremely cautious market sentiment. Amid changes in macro pricing logic, micro-level market dynamics have intensified, with investors seeking certainty in energy sectors such as lithium batteries. However, the sustainability of single-sector rallies is challenged in a shrinking market environment, making the 'cost pass-through' capability within industry chains a key focus. Looking ahead, the current weak balance is set to face multiple testing periods. Externally, geopolitical variables persist, while domestically, the 'pre-holiday effect' suppresses trading activity. However, from a cross-month perspective, as April ushers in a period of intensive financial report disclosures for A-shares, market pricing anchors are expected to gradually penetrate emotional disturbances and return to fundamental validation. In terms of allocation, moderate attention should be given to coal, power chains, and chemical raw materials that potentially benefit from high oil prices and possess cost pass-through capabilities, while maintaining a base position in low-level essential consumption.