CICC: If the Fed cuts interest rates by 50 basis points in September, it may trigger a sell-off of risky assets

Zhang Weixin, an analyst at CITIC Securities Futures, said that if the Fed chooses to cut interest rates by 25BP in September, it will be considered a precautionary rate cut, which is good for copper prices. If the Fed cuts interest rates by 50BP in September, it may trigger a sell-off of risky assets. If the Fed does not cut interest rates in September, on the one hand, the expected failure will lead to selling pressure, and on the other hand, the uncertainty brought by high interest rates to the economy will increase, which is a definite negative for copper prices. In the future, copper prices will fluctuate weakly. "We are cautious about copper prices, mainly because we are pessimistic about global economic expectations. In the two areas where copper demand is growing fastest, the growth rate of new energy vehicles and power investment is facing a slowdown, and copper supply has encountered more disturbances this year. If it improves next year, the supply and demand relationship will further weaken." (Futures Daily)