The UK economy is currently in a very difficult situation. Borrowing costs remain high for a long period, which is a heavy burden for an economy that is already experiencing sluggish growth and lack of investment momentum.

Worse still, once high interest rates persist long enough, they can easily become stuck at elevated levels, with the risk of rising even further. By then, the entire economy's financing pressure will grow like a snowball.

This environment has a significant impact on the market. When macroeconomic fundamentals are under pressure and policy space is limited, investors' risk appetite naturally declines. This is also why recent global financial market volatility has increased, and many asset prices are readjusting. For traders, understanding this macro backdrop is crucial for judging market rhythm.